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	$ 121,000
124	Office supplies	1,500
128	Prepaid insurance	2,650
167	Equipment	54,000
168	Accumulated depreciationEquipment		$ 5,400
201	Accounts payable		15,000
210	Wages payable		600
301	C. Karise, Capital		35,000
302	C. Karise, Withdrawals	16,500
403	Services revenue		204,950
612	Depreciation expenseEquipment	5,400
623	Wages expense	37,000
637	Insurance expense	800
640	Rent expense	15,500
650	Office supplies expense	3,700
690	Utilities expense	2,900
	Totals	$ 260,950	$ 260,950

Note: C. Karise, Capital account balance was $35,000 on December 31 of the prior year, and there were no owner investments during the year. Required: 1a. Prepare an income statement for the year. 1b. Prepare a statement of owner's equity for the year. 1c. Prepare a classified balance sheet at December 31. 2. Prepare the December 31 closing entries.