The adjusted trial balance for Tybalt Construction on December 31of the current year follows. Oro Tybalt invested $7,500 cash in the business during the year. The O. Tybalt, Capital account balance was $122,000 on December 31 of theprior 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. (10 Points) 16 1. What is the difference between accrual-basis accounting and cash-basis accounting? 2. How often are financial statements prepared? What is a