This alphabetized adjusted trial balance is for GalaVu Entertainment as of its December 31, 2020, year-end:

DebitCreditAccounts payable$43,600Accounts receivable$18,300Accumulated depreciation, automobiles68,600Accumulated depreciation, equipment20,100Advertising expense8,600Automobiles136,000Cash10,600Depreciation expense, automobiles12,800Depreciation expense, equipment3,700Equipment63,000Revenue231,375Interest income250Interest expense3,100Interest payable100Interest receivable200John Conroe, capital22,600John Conroe, withdrawals18,600Land33,000Long-term notes payable111,000Notes receivable (due in 90 days)78,000Office supplies3,600Office supplies expense12,600Repairs expense, automobiles8,000Salaries expense75,825Salaries payable5,100Unearned revenue10,600Wages expense27,400Totals$513,325$513,325

Required:

Use the information in the trial balance to prepare:

a.The income statement for the year ended December 31, 2020.

b.The statement of changes in equity for the year ended December 31, 2020, assuming that the owner made additional investments of $13,000 during the year.