Problem 3-9A Preparing financial statements and closing entries C P5 P6 The adjusted trial balance of Karise Repairs on December 31 follows. Required 1. Prepare an income statement and a statement of retained earnings for the year, and a classified balance sheet at December 31. Note: The Retained Earnings account balance was $23,000 on December 31 of the prior year. Check (1) Net income, $30,750 2. Prepare the December 31 closing entries