Tunstall, Incorporated, a small service company, keeps its records without the help of an accountant. After much effort, an outside accountant prepared the following unadjusted trial balance as of the end of the annual accounting period on December 31:

Tunstall, Incorporated
Unadjusted Trial Balance
At December 31
	Debit	Credit
Cash	47,700
Accounts receivable	10,500
Supplies	560
Prepaid insurance	760
Service trucks	16,400
Accumulated depreciation		8,500
Other assets	9,360
Accounts payable		2,280
Wages payable
Income taxes payable
Notes payable (3 years; 10% interest due each September 30)		15,000
Common stock (5,800 shares outstanding)		1,936
Additional paid-in capital		17,424
Retained earnings		5,000
Service revenue		84,580
Wages expense	16,200
Remaining expenses (not detailed; excludes income tax)	33,240
Income tax expense
Totals	134,720	134,720

Data not yet recorded at December 31 included:

1. The supplies count on December 31 reflected $230 in remaining supplies on hand to be used in the next year.
2. Insurance expired during the current year, $760.
3. Depreciation expense for the current year, $3,900.
4. Wages earned by employees not yet paid on December 31, $670.
5. Three months of interest expense (for the note payable borrowed on October 1 of the current year) was incurred in the current year.
6. Income tax expense, $5,580. 2-a. Prepare an income statement (with Operating Income and Other Items sections) that include the effects of the preceding six transactions.

2-b. Prepare a classified balance sheet that include the effects of the preceding five transactions.