Problem 4-3A The adjusted trial balance of Kobe Repairs on December 31, 2011. follows. KOBE REPAIRS Adjusted Trial Balance December 31, 2011 Account Title Credit 101 124 128 167 168 201 210 $ 13.000 1.200 1.950 48.000 $ 4.000 12.000 500 40.000 301 Cash .. . Office supplies.. Prepaid insurance ... Equipment Accumulated depreciation Equipment Accounts payable .. Wages payable .... S. Kobe, Capital . . S. Kobe, Withdrawals ..... Repair fees earned Depreciation expense-Equipment Wages expense ....... Insurance expense ......... Rent expense Office supplies expense.... Utilities expense ........... Totals 302 401 15.000 77.750 612 4.000 36.500 700 623 637 640 650 690 9,600 2.600 1.700 $134.250 $134,250 Required 1. Prepare an income statement and a statement of owner's equity for the year 2011, and a classified hal- ance sheet at December 31, 2011. There are no owner investments in 2011 2. Enter the adjusted trial balance in the first two columns of a six-column table. Use columns three and four for closing entry information and the last two columns for a post-closing trial balance. Insert an Income Summary account as the last item in the trial balance. 3. Enter closing entry information in the six-column table and prepare journal entries for it Analysis Component 4. Assume for this part only that a. None of the $700 insurance expense had expired during the year. Instead, assume it is a prepay. ment of the next period's insurance protection b. There are no earned and unpaid wages at the end of the year. (Hint: Reverse the $500 wages pay able accrual.) Describe the financial statement changes that would result from these two assumptions