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Tunstall,Incorporated, a small service company, keeps its records without the help of an accountant. After much effort, an outside accountant prepared the following unadjusted trial balance as of the end of the annual accounting period on December 31:

Tunstall, Incorporated
Unadjusted Trial Balance
At December 31
	Debit	Credit
Cash	47,200
Accounts receivable	11,400
Supplies	590
Prepaid insurance	780
Service trucks	16,700
Accumulated depreciation		8,200
Other assets	9,660
Accounts payable		2,340
Wages payable
Income taxes payable
Notes payable (3 years; 10% interest due each September 30)		12,000
Common stock (4,000 shares outstanding)		1,986
Additional paid-in capital		17,874
Retained earnings		4,300
Service revenue		89,150
Wages expense	16,200
Remaining expenses (not detailed; excludes income tax)	33,320
Income tax expense
Totals	135,850	135,850

Data not yet recorded at December 31 included:

1. The supplies count on December 31 reflected $210 in remaining supplies on hand to be used in the next year.
2. Insurance expired during the current year, $780.
3. Depreciation expense for the current year, $3,400.
4. Wages earned by employees not yet paid on December 31, $560.
5. Three months of interest expense (for the note payable borrowed on October 1 of the current year) was incurred in the current year.
6. Income tax expense, $5,180.

2-a. Prepare an income statement (with Operating Income and Other Items sections) that include the effects of the preceding six transactions.

2-b. Prepare a classified balance sheet that include the effects of the preceding five transactions.