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The general ledger of Zips Storage at January 1, 2021, includes the following account balances:

Accounts	Debits				Credits
Cash	$	24,900
Accounts Receivable		15,700
Prepaid Insurance		12,600
Land		151,000
Accounts Payable					$	7,000
Deferred Revenue						6,100
Common Stock						146,000
Retained Earnings						45,100
Totals	$	204,200			$	204,200

The following is a summary of the transactions for the year:

1.		January		9		Provide storage services for cash, $137,100, and on account, $53,700.
2.		February		12		Collect on accounts receivable, $51,800.
3.		April		25		Receive cash in advance from customers, $13,200.
4.		May		6		Purchase supplies on account, $9,800.
5.		July		15		Pay property taxes, $8,800.
6.		September		10		Pay on accounts payable, $11,700.
7.		October		31		Pay salaries, $126,600.
8.		November		20		Issue shares of common stock in exchange for $30,000 cash.
9.		December		30		Pay $3,100 cash dividends to stockholders.

8-a. Prepare the income statement for the year ended December 31, 2021.

ZIPS STORAGE Unadjusted Trial Balance December 31, 2021 Accounts Debit Credit Cash $ 106,800 Accounts Receivable 12,600 Prepaid Insurance Supplies Land 9,800 151,000 Accounts Payable $ 5,100 Deferred Revenue Common Stock 176,000 Retained Earnings 45, 100 Dividends 3,100 Service Revenue 190,800 8,800 Property Tax Expense Salaries Expense Insurance Expense 126,600 Supplies Expense Totals $ 418,700 $ 417,000 8-b. Prepare the classified balance sheet for the year ended December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.) ZIPS STORAGE Balance Sheet December 31, 2021 Assets Liabilities Current assets: Current liabilities: Cash $ 106,800 Accounts Payable $ 5,100 19,300 Accounts Receivable 17,600 Deferred Revenue 12,600 Prepaid Insurance Supplies 9,800 Total current liabilities 24,400 Stockholders' Equity Total current assets 146,800 Common Stock 176,000 97,400 Long-term assets: Retained Earnings 151,000 Total stockholders' equity Total liabilities and stockholders' equity 273,400 297,800 Total assets $ 297,800 $ 8-a. Prepare the income statement for the year ended December 31, 2021. ZIPS STORAGE Income Statement For the Year Ended December 31, 2021 Service Revenue 190,800 $ Expenses: Property Tax Expense Salaries Expense Insurance Expense Supplies Expense 8,800 126,600 Total Expenses 135,400 55,400 Net Income