The adjusted trial balance of RAK Corporation on December 31, 2020, follows.

RAK Corporation

Adjusted Trial Balance

Account Title

Debit

Credit

Cash

29,180

Prepaid insurance

4,050

Prepaid rent

6,750

Accounts receivable

467

Office supplies

333

Machinery

30,000

Equipment

40,000

Note payable

10,000

Accounts Payable

5,000

Unearned service revenue

15,000

Interest payable

41.7

Accumulated depreciation

1,500

Owner's capital

80,000

Owner's withdrawals

5,000

Service revenue

17,567

Insurance expense

1,350

Advertising expense

640

Rent expense

6,750

Salaries and wages expenses

890

Utility expenses

490

Depreciation expense

1,500

Interest expense

41.7

Supplies expense

1,667

TOTAL

129,108.3

129,108.3

Assume there are no owner investments in 2020.

a. Prepare an income statement for the year 2020 (30 marks).

b. Prepare a statement of owner's equity for the year 2020 (30 marks).

c. Prepare a classified balance sheet at December 31, 2020 (40 marks).

RAK Corporation

Income Statement

For the Month Ending December 31, 2020

RAK Corporation

Owners Equity Statement

For the Month Ending December 31, 2020

RAK Corporation

Owners Equity Statement

For the Month Ending December 31, 2020

ASSETS

LIABILITIES

EQUITY