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	$ 14,000
124	Office supplies	1,300
128	Prepaid insurance	2,050
167	Equipment	50,000
168	Accumulated depreciationEquipment		$ 5,000
201	Accounts payable		14,000
210	Wages payable		600
307	Common stock		10,000
318	Retained earnings		23,000
319	Dividends	16,000
403	Services revenue		90,950
612	Depreciation expenseEquipment	5,000
623	Wages expense	37,500
637	Insurance expense	800
640	Rent expense	10,600
650	Office supplies expense	3,600
690	Utilities expense	2,700
	Totals	$ 143,550	$ 143,550

Note: Retained Earnings account balance was $23,000 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.