The adjusted trial balance for Anara Co. on December 31 of the current year follows. Petra Anara invested $40,000 cash in the business during the year. The P. Anara, Capital account balance was $52,800 on December 31 of the prior year.

Required

1. Prepare the income statement and the statement of owner’s equity for the current year ended December 31, and the classified balance sheet at December 31.

2. Prepare the necessary closing entries at December 31 of the current year.

Transcribed Image Text:

Adjusted Trial Balance December 31 No. Account Title Debit Credit 101 Cash.. $ 7,400 126 Supplies.. Prepaid insurance Equipment ... Accumulated depreciation-Equipment Building.... Accumulated depreciation-Building Land..... 15,800 128 1,000 167 24,000 168 $ 4,000 173 100,000 174 10,000 183 30,500 201 Accounts payable.. 3,500 203 Interest payable . 1,750 Rent payable... Wages payable... Property taxes payable Unearned revenue.. 208 400 210 1,280 213 3,330 236 9,150 31,600 251 Long-term notes payable. P. Anara, Capital..... P. Anara, Withdrawals Services revenue Rent revenue .. 301 92,800 302 8,000 403 59,600 406 4,500 409 Interest revenue. 2,320 2,000 1,000 606 Depreciation expense-Building. Depreciation expense-Equipment. Wages expense Interest expense. Insurance expense. Rent expense. Supplies expense. Property taxes expense Totals... 612 623 22,030 633 1,550 1,525 637 640 3,600 652 1,000 4,825 $224,230 683 $224,230