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

KARISE REPAIRS

Adjusted Trial Balance

December $31$

Number Account Title Debit Credit

$101$ Cash $ $102,000$

$124$ Office supplies $1,400$

$128$ Prepaid insurance $2,150$

$167$ Equipment $55,000$

$168$ Accumulated depreciation$$Equipment $ $5,500$

$201$ Accounts payable $15,500$

$210$ Wages payable $1,200$

$301$ C$.$ Karise, Capital $33,000$

$302$ C$.$ Karise, Withdrawals $16,000$

$403$ Services revenue $187,050$

$612$ Depreciation expense$$Equipment $5,500$

$623$ Wages expense $42,000$

$637$ Insurance expense $600$

$640$ Rent expense $10,500$

$650$ Office supplies expense $4,100$

$690$ Utilities expense $3,000$

Totals $ $242,250$ $ $242,250$

Note: C$.$ Karise, Capital account balance was $$33,000$ on December $31$ of the prior year, and there were no owner investments during the year.

Required:

$1$a$.$ Prepare an income statement for the year.

$1$b$.$ Prepare a statement of owner's equity for the year.KARISE REPAIRS

Income Statement

For Year Ended December $31$