This alphabetized adjusted trial balance is for GalaVu Entertainment as of its December 31, 2023, year-end:

Required
Use the information in the trial balance to prepare:
a. The income statement for the year ended December 31, 2023.
b. The statement of changes in equity for the year ended December 31, 2023, assuming that the owner made additional investments of $15,000 during the year.
c. The balance sheet as of December 31, 2023.

Analysis Component:
The owner, John Conroe, is very pleased with the change in the business’s financial position. Specifically, he noted that his equity increased. “My banker told me that as long as equity is increasing, my business is doing great.” Comment.

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Accounts payable Accounts receivable Accumulated depreciation, automobiles Accumulated depreciation, equipment Advertising expense Automobiles Cash Depreciation expense, automobiles Depreciation expense, equipment Equipment Interest income Interest expense Interest payable Interest receivable John Conroe, capital John Conroe, withdrawals Land Long-term notes payable Notes receivable (due in 90 days) Office supplies Office supplies expense Repairs expense, automobiles Revenue Salaries expense Salaries payable Unearned revenue Wages expense Totals Debit Credit $ 44,000 $ 18,700 9,000 140,000 11,000 13,200 4,100 65,000 3,500 300 19,000 35,000 80,000 4,000 13,000 8,400 76,225 69,000 20,500 150 75 23,000 115,000 240,000 5,500 11,000 27,800 $528,225 $528,225