The Artisan Wines is a retail store selling vintage wines. On December $31,20$X$1,$ the firm$$s general ledger contained the accounts and balances below. All account balances are normal.

Artisan Wines

Worksheet

Year Ended December $31,20$X$1$

Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet

Account Name Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit

Cash $27,786\mathrm{.}0027,786\mathrm{.}0027,786\mathrm{.}00$

Accounts Receivable $440\mathrm{.}00440\mathrm{.}00440\mathrm{.}00$

Prepaid Advertising $1,440\mathrm{.}00480\mathrm{.}00960\mathrm{.}00960\mathrm{.}00$

Supplies $240\mathrm{.}00170\mathrm{.}0070\mathrm{.}0070\mathrm{.}00$

Merchandise Inventory $14,400\mathrm{.}0011,400\mathrm{.}0014,400\mathrm{.}0011,400\mathrm{.}0011,400\mathrm{.}00$

Store Equipment $22,000\mathrm{.}0022,000\mathrm{.}0022,000\mathrm{.}00$

Accumulated Depreciation$$Store Equipment $2,400\mathrm{.}002,975\mathrm{.}005,375\mathrm{.}005,375\mathrm{.}00$

Office Equipment $4,400\mathrm{.}004,400\mathrm{.}004,400\mathrm{.}00$

Accumulated Depreciation$$Office Equipment $1,440\mathrm{.}00940\mathrm{.}002,380\mathrm{.}002,380\mathrm{.}00$

Notes Payable, due $20$X$217,000\mathrm{.}0017,000\mathrm{.}0017,000\mathrm{.}00$

Accounts Payable $2,105\mathrm{.}002,105\mathrm{.}002,105\mathrm{.}00$

Wages Payable $380\mathrm{.}00380\mathrm{.}00380\mathrm{.}00$

Social Security Tax Payable $23\mathrm{.}5623\mathrm{.}5623\mathrm{.}56$

Medicare Tax Payable $5\mathrm{.}515\mathrm{.}515\mathrm{.}51$

Unearned Seminar Fees $4,200\mathrm{.}002,800\mathrm{.}001,400\mathrm{.}001,400\mathrm{.}00$

Interest Payable $85\mathrm{.}0085\mathrm{.}0085\mathrm{.}00$

Vincent Arroyo, Capital $35,280\mathrm{.}0035,280\mathrm{.}0035,280\mathrm{.}00$

Vincent Arroyo, Drawing $13,510\mathrm{.}0013,510\mathrm{.}0013,510\mathrm{.}00$

Income Summary $14,400\mathrm{.}0011,400\mathrm{.}0014,400\mathrm{.}0011,400\mathrm{.}0014,400\mathrm{.}0011,400\mathrm{.}00$

Sales $147,970\mathrm{.}00147,970\mathrm{.}00147,970\mathrm{.}00$

Sales Discounts $140\mathrm{.}00140\mathrm{.}00140\mathrm{.}00$

Seminar Fee Income $2,800\mathrm{.}002,800\mathrm{.}002,800\mathrm{.}00$

Purchases $88,000\mathrm{.}0088,000\mathrm{.}0088,000\mathrm{.}00$

Purchases Returns and Allowances $940\mathrm{.}00940\mathrm{.}00940\mathrm{.}00$

Freight In $165\mathrm{.}00165\mathrm{.}00165\mathrm{.}00$

Rent Expense $12,600\mathrm{.}0012,600\mathrm{.}0012,600\mathrm{.}00$

Wages Expense $23,400\mathrm{.}00380\mathrm{.}0023,780\mathrm{.}0023,780\mathrm{.}00$

Payroll Taxes Expense $2,724\mathrm{.}0045\mathrm{.}902,753\mathrm{.}072,753\mathrm{.}07$

Depreciation Expense$$Store Equipment $2,975\mathrm{.}002,975\mathrm{.}002,975\mathrm{.}00$

Depreciation Expense$$Office Equipment $940\mathrm{.}00940\mathrm{.}00940\mathrm{.}00$

Advertising Expense $480\mathrm{.}00480\mathrm{.}00480\mathrm{.}00$

Supplies Expense $170\mathrm{.}00170\mathrm{.}00170\mathrm{.}00$

Interest Expense $90\mathrm{.}0085\mathrm{.}00175\mathrm{.}00175\mathrm{.}00$

Totals $211,335\mathrm{.}00211,335\mathrm{.}0033,895\mathrm{.}9033,895\mathrm{.}90227,380\mathrm{.}90227,380\mathrm{.}90146,814\mathrm{.}90163,110\mathrm{.}0080,566\mathrm{.}0064,270\mathrm{.}90$

Net Income $16,531\mathrm{.}9316,531\mathrm{.}93$

Prepare a classified income statement for the year ended December $31,20$X$1.$ The company does not classify its operating expenses as selling expenses and general and administrative expenses.

Prepare a statement of owner$$s equity for the year ended December $31,20$X$1.$ No additional investments were made during the year.

Prepare a classified balance sheet as of December $31,20$X$1.$