The adjusted trial balance for Arun?s Animations is presented below.

Instructions

a. Prepare an income statement and statement of owner?s equity for the year. Mr. Arun invested $5,000 cash in the business during the year.

b. Prepare a classified balance sheet at December 31, 2021.

Transcribed Image Text:

ARUN'S ANIMATIONS Adjusted Trial Balance December 31, 2021 Debit Credit Cash $ 3,600 Accounts receivable 4,500 Prepaid expenses Equipment Accumulated depreciation-equipment Accounts payable 2,500 48,000 $ 18,000 5,500 Unearned revenue 9,775 19,625 M. Arun, capital M. Arun, drawings Service revenue 18,000 64,800 Rent expense Salaries expense Supplies expense Depreciation expense 9,000 24,000 2,100 6,000 $117,700 $117,700