Sarda Electrical Servicing began operations two years ago. Its adjusted account balances at December 31, 2023, are listed alphabetically below. The owner, Nymeth Sarda, made a $20,000 investment early in the year just ended December 31, 2023.

Required

1. Prepare an income statement, statement of changes in equity, and classified balance sheet based on the information provided.

2. Prepare the closing entries.

3. Prepare the post-closing trial balance.

Analysis Component:
Some businesses finance a significant portion of their growth by reinvesting profits. Is Nymeth Sarda, the owner of Sarda Electrical Servicing, following a similar practice? Explain.

Transcribed Image Text:

Accounts payable Accounts receivable Account Accumulated depreciation, tools Accumulated depreciation, truck Cash Copyright Depreciation expense, tools Depreciation expense, truck Electrical revenue Electrical supplies Insurance expense Interest expense Notes receivable** Nymeth Sarda, capital Nymeth Sarda, withdrawals Notes payable, due August 31, 2025 Notes payable, due June 1, 2024 Prepaid insurance Prepaid rent Rent expense Salaries expense Salaries payable Tools Truck Unearned electrical revenue Account Balance* $ 21,000 10,500 4,500 21,000 5,000 5,100 2,250 3,600 126,600 19,000 1,275 900 12,000 27,825 61,500 27,000 2,550 1,050 7,200 21,000 27,000 3,150 21,000 40,500 5,250