Problem 4-4A (Algo) Preparing financial statements and closing entries LO C1, P2

The adjusted trial balance for Tybalt Construction on December 31 of the current year follows.

TYBALT CONSTRUCTION
Adjusted Trial Balance
December 31
Number	Account Title	Debit	Credit
101	Cash	$ 6,500
126	Supplies	33,300
128	Prepaid insurance	8,000
167	Equipment	40,000
168	Accumulated depreciationEquipment		$ 20,000
173	Building	165,000
174	Accumulated depreciationBuilding		55,000
183	Land	67,200
201	Accounts payable		17,500
203	Interest payable		2,500
208	Rent payable		3,300
210	Wages payable		2,400
213	Property taxes payable		1,000
236	Unearned revenue		14,100
251	Long-term notes payable		63,000
301	O. Tybalt, Capital		129,900
302	O. Tybalt, Withdrawals	11,200
404	Services revenue		103,000
406	Rent revenue		15,000
409	Interest revenue		5,600
606	Depreciation expenseBuilding	12,100
612	Depreciation expenseEquipment	6,000
623	Wages expense	46,700
633	Interest expense	3,000
637	Insurance expense	9,700
640	Rent expense	11,500
652	Supplies expense	7,200
683	Property taxes expense	4,900
	Totals	$ 432,300	$ 432,300

Oro Tybalt invested $6,500 cash in the business during the year. The O. Tybalt, Capital account balance was $123,400 on December 31 of the prior year.

Required:

1a. Prepare the income statement for the current year ended December 31.

1b. Prepare the statement of owner's equity for the current year ended December 31.

1c. Prepare the classified balance sheet at December 31 of the current year.

2. Prepare the necessary closing entries at December 31 of the current year.