The following data is provided to you for the R. Black property.

Property of R. Black

Trial balance as of December 31, 2019

credit debit

Cash $10,000

Accounts receivable 20,000

Merchandise inventory 30,000

Accounts payable $25,000

R. Negro, capital 5.000

R. Negro, withdrawals 7,000

Sales 166,000

Cost of goods sold 100,000

Rental expenses 24,000

Income tax expenses 5,000

Totals $196,000 $196,000

Black contributed $5,000 of capital during the year.

Required:

1. Prepare an income statement for the year.

2. Prepare an owner's equity statement for the year in the following format:

Property of R. Black

Owner's Equity Statement

For the year ended December 31, 2019

Balance as of January 1, 2019 $

contributions

Net Income

withdrawals

Balance as of December 31, 2019 $

3.Prepare a balance sheet as of December 31, 2019.

4. Prepare closing entries at the end of the year.