Problem 4-5A Preparing trial balances, closing entries, and financial statements LO C3, P2, P3

The adjusted trial balance of Karise Repairs on December 31 follows.

KARISE REPAIRS Adjusted Trial Balance December 31
No.	Account Title	Debit				Credit
101	Cash	$	84,000
124	Office supplies		1,800
128	Prepaid insurance		2,250
167	Equipment		56,000
168	Accumulated depreciationEquipment					$	5,600
201	Accounts payable						13,500
210	Wages payable						900
301	C. Karise, Capital						35,000
302	C. Karise, Withdrawals		19,000
401	Repair fees earned						171,150
612	Depreciation expenseEquipment		5,600
623	Wages expense		37,000
637	Insurance expense		1,000
640	Rent expense		12,000
650	Office supplies expense		3,100
690	Utilities expense		4,400
	Totals	$	226,150			$	226,150

Note: C. Karise, Capital was $35,000 on December 31 of the prior year. Required: 1a. Prepare an income statement for the year. 1b. Prepare a statement of owner's equity for the year. 1c. Prepare a classified balance sheet at December 31. 2. Complete the work sheet using 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. 3. Using information from the work sheet in Requirement 2, prepare the appropriate closing entries.