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

Required

1. Prepare an income statement and a statement of owner’s equity for the year, and a classified balance sheet at December 31. The C. Karise, Capital account balance was $33,000 on December 31 of the prior year, and there were no owner investments during the current year.

2. Prepare the December 31 closing entries.

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Adjusted Trial Balance December 31 No. Account Title Debit Credit $ 14,000 Cash ....... Office supplies. 101 124 1,300 128 Prepaid insurance 2,050 167 Equipment .... 50,000 $ 5,000 Accumulated depreciation-Equipment. Accounts payable.. Wages payable.... C. Karise, Capital C. Karise, Withdrawals Services revenue 168 201 14,000 210 600 301 33,000 302 16,000 403 90,950 612 Depreciation expense-Equipment. 5,000 623 Wages expense Insurance expense.. Rent expense.. 37,500 637 800 640 10,600 650 Office supplies expense.. 3,600 690 Utilities expense... 2,700 Totals. $143,550 $143,550