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

Note: C. Karise, Capital account balance was $37,000 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.

KARISE REPAIRS Adjusted Trial Balance December 31 \begin{tabular}{|c|c|c|c|} \hline Number & Account Title & Debit & Credit \\ \hline 101 & Cash & $85,000 & \\ \hline 124 & Office supplies & 1,200 & \\ \hline 128 & Prepaid insurance & 2,100 & \\ \hline 167 & Equipment & 59,000 & \\ \hline 168 & Accumulated depreciation-Equipment & & $5,900 \\ \hline 201 & Accounts payable & & 13,000 \\ \hline 210 & Wages payable & & 800 \\ \hline 301 & C. Karise, Capital & & 37,000 \\ \hline 302 & C. Karise, Withdrawals & 18,000 & \\ \hline 403 & Services revenue & & 170,800 \\ \hline 612 & Depreciation expense-Equipment & 5,900 & \\ \hline 623 & Wages expense & 37,000 & \\ \hline 637 & Insurance expense & 1,400 & \\ \hline 640 & Rent expense & 11,000 & \\ \hline 650 & Office supplies expense & 4,300 & \\ \hline \multirow[t]{2}{*}{690} & Utilities expense & 2,600 & \\ \hline & Totals & $227,500 & $227,500 \\ \hline \end{tabular}