Required information M4-14 through M4-17 (Algo) Reporting an Income Statement, Reporting a Statement of Retained Earnings, Reporting a Balance Sheet and Recording Closing Journal Entries [LO 4-4, LO 4-5] [The following information applies to the questions displayed below.] The Sky Blue Corporation has the following adjusted trial balance at December 31. Cash Accounts Receivable Prepaid Insurance Notes Receivable (long-term) Equipment Accumulated Depreciation Accounts Payable Salaries and Wages Payable Income Taxes Payable Deferred Revenue Common Stock Retained Earnings Dividends Sales Revenue Rent Revenue Salaries and Wages Expense Depreciation Expense Utilities Expense Insurance Expense Rent Expense Income Tax Expense Total Debit $ 1,270 2,400 2,700 3,400 14,000 340 22,400 1,700 4,620 1,800 6,400 3,300 $ 64,330 Credit $ 3,400 5,820 1,200 3,300 680 2,800 1,160 45,630 340 $ 64,330

Required information M4-14 through M4-17 (Algo) Reporting an Income Statement, Reporting a Statement of Retalned Earnings, Reporting a Balance Sheet and Recording Closing Journal Entries [LO 4-4, LO 4-5] [The following information applies to the questions displayed below.] The Sky Blue Corporation has the following adjusted trial balance at December 31. 1. Prepare a classified balance sheet at December 31 . 2. Are the Sky Blue Corporation's assets financed primarily by debt or equity? Prepare a classified balance sheet at December 31. (Amounts to be deducted should be indicated by a minus sign.)