The adjusted trial balance of Special Event Security Services (SESS), an unincorporated business owned and operated by Jim Popovich, is provided below:

SPECIAL EVENT SECURITY SERVICES

Adjusted Trial Balance

September 30, 2021

Debit Credit

Cash ....................................................................................................$ 10,000

Accounts receivable............................................................................. 8,500

Prepaid insurance................................................................................ 1,100

Land..................................................................................................... 50,000

Building................................................................................................ 260,000

Accumulated depreciation—building .................................................... $ 31,200

Equipment............................................................................................ 18,000

Accumulated depreciation—equipment................................................ 7,200

Accounts payable................................................................................. 15,500

Accrued interest ................................................................................... 500

Unearned revenue ............................................................................... 25,000

Note payable........................................................................................ 100,000

J. Popovich, capital .............................................................................. 48,150

J. Popovich, drawings .......................................................................... 36,000

Service revenue................................................................................... 420,000

Depreciation expense .......................................................................... 2,350

Insurance expense............................................................................... 6,600

Interest expense .................................................................................. 5,000

Rent expense....................................................................................... 60,000

Wages expense ................................................................................... 190,000 _______

$ 647,550 $ 647,550

Additional information:

i. The note payable is due in annual instalments of $10,000 principal plus interest. The next payment is due August 31, 2022.

ii. Jim Popovich invested $20,000 on June 1, 221.

Instructions

Prepare the following for the year ended September 30, 2021:

a) the income statement;

b) statement of owner's equity and

c) classified balance sheet