The adjusted trial balance of Karise Repairs on December 31 follows. KARISE REPAIRS Adjusted Trial Balance December 31 Number Account Title 101 Cash 124 office supplies 128 Prepaid insurance 167 Equipment 168 Accumulated depreciation-Equipment 201 Accounts payable 210 Wages payable 307 Common stock 318 Retained earnings 319 Dividends 403 Services revenue 612 Depreciation expense-Equipment 623 Wages expense 637 Insurance expense 640 Rent expense 650 Office supplies expense 690 Utilities expense Totals Debit Credit $ 32,000 1,400 2,900 54,000 $ 5,400 14,000 800 14,000 33,000 17,000 106,200 5,400 37,000 1,200 14,500 4,300 3,700 $ 173,400 $ 173,400 Note: Retained Earnings account balance was $33,000 on December 31 of the prior year. Required: 1a. Prepare an income statement for the year. 1b. Prepare a statement of retained earnings for the year. 1c. Prepare a classified balance sheet at December 31. 2. Prepare the December 31 closing entries. KARISE REPAIRS Income Statement For Year Ended December 31 EA 106,200 Revenues Services revenue Expenses Depreciation expense-Equipment Wages expense Insurance expense UA $ 5,400 37,000 1,200 14,500 4,300 3,700 Rent expense Office supplies expense Utilities expense Total expenses Net income 66,100 40,100 GA $ KARISE REPAIRS Statement of Retained Earnings For Year Ended December 31 Retained earnings, December 31 prior year Add: Net income $ $ 33,000 106,200 139,200 Less: Investments by owner Retained earnings, December 31 current year $ 139,200 KARISE REPAIRS Balance Sheet December 31 Assets Current assets $ Cash Office supplies Prepaid insurance 32,000 1,400 2,900 $ 36,300 54,000 5,400 Total current assets Plant assets Equipment Accumulated depreciation-Equipment Total assets Liabilities Current liabilities Accounts payable Wages payable 48,600 84,900 $ $ 14,000 800 Total current liabilities 14,800 Equity Common stock Retained earnings Dividends Total liabilities and equity 14,000 33,000 47,000 61.800 A View transaction list Journal entry worksheet Record the entry to close the revenue account(s). Note: Enter debits before credits. General Journal Debit Credit Date December 31