This alphabetized adjusted trial balance is for GalaVu Entertainment as of its December 31, 2020, year-end: Debit Credit $ 44,600 $ 19,300 69,600 21,100 9,600 146,000 11,600 13,800 4,700 68,000 252,600 150 4,100 75 Accounts payable Accounts receivable Accumulated depreciation, automobiles Accumulated depreciation, equipment Advertising expense Automobiles Cash Depreciation expense, automobiles Depreciation expense, equipment Equipment Revenue Interest income Interest expense Interest payable Interest receivable John Conroe, capital John Conroe, withdrawals Land Long-term notes payable Notes receivable (due in 90 days) Office supplies Office supplies expense Repairs expense, automobiles Salaries expense Salaries payable Unearned revenue Wages expense Totals 300 23,600 19,600 38,000 121,000 83,000 4,600 13,600 9,000 76,825 6,100 11,600 28,400 $ 550,425 $ 550, 425 Required: Use the information in the trial balance to prepare: a. The income statement for the year ended December 31, 2020. GALAVU ENTERTAINMENT Income Statement For Year Ended December 31, 2020 Revenues: Revenue $ 252,600 Interest income 150 Total revenues $ 252,750 9,600 Operating Expenses: Advertising expense Depreciation expense, automobiles Depreciation expense, equipment 13,800 4,700 4,100 Interest expense Office supplies expense Salaries expense Wages expense Repairs expense, automobiles 13,600 76,825 28,400 9,000 Total operating expenses 160,025 92,725 Profit $ b. The statement of changes in equity for the year ended December 31, 2020, assuming that the owner made additional investments of $18,000 during the year. GALAVU ENTERTAINMENT Statement of Changes in Equity For Year Ended December 31, 2020 John Conroe, capital, January 1 Add: Investment by owner Add: Profit 0 Total $ O Less: Withdrawal by owner 0 John Conroe, capital, December 31 c. The balance sheet as of December 31, 2020. (Be sure to list the assets and liabilities in order of their liquidity.) GALAVU ENTERTAINMENT Balance Sheet December 31, 2020 Assets Accounts receivable $ 19,300 11,600 Cash Interest receivable 300 Land 38,000 Notes receivable 83,000 $ 146,000 13,800 132,200 $ Automobiles Less: Accumulated depreciation Equipment Less: Accumulated depreciation Office supplies Total Assets 68,000 4,700 63,300 4,600 352,300 $ Liabilities $ 44,600 Accounts payable Interest payable Long-term notes payable Salaries payable 75 121,000 6,100 Total Liabilities $ 171,775 Equity John Conroe, capital Total Liabilities and Equity $ 171,775