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Problem 3-9A (Algo) Preparing financial statements and closing entries LO C2, P5, P6 The adjusted...

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Accounting

Problem 3-9A (Algo) Preparing financial statements and closing entries LO C2, P5, P6

The adjusted trial balance of Karise Repairs on December 31 follows.

KARISE REPAIRS
Adjusted Trial Balance
December 31
Number Account Title Debit Credit
101 Cash $ 29,000
124 Office supplies 1,000
128 Prepaid insurance 2,350
167 Equipment 51,000
168 Accumulated depreciationEquipment $ 5,100
201 Accounts payable 12,000
210 Wages payable 800
307 Common stock 19,000
318 Retained earnings 39,000
319 Dividends 17,000
403 Services revenue 87,150
612 Depreciation expenseEquipment 5,100
623 Wages expense 38,000
637 Insurance expense 800
640 Rent expense 11,500
650 Office supplies expense 3,300
690 Utilities expense 4,000
Totals $ 163,050 $ 163,050

Note: Retained Earnings account balance was $39,000 on December 31 of the prior year. Required: 1a. Prepare an income statement for the year. 1b. Prepare a statement of retained earnings for the year. 1c. Prepare a classified balance sheet at December 31. 2. Prepare the December 31 closing entries.

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