The adjusted trial balance for Tybalt Construction on December 31 of the current year follows. Oro Tybalt invested $5,000 cash in the business during the year. The O. Tybalt, Capital account balance was $121,400 on December 31 of the prior year.

Required1. 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.

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Account Title Adjusted Trial Balance December 31 No. 101 Cash. 126 Supplies. 128 Prepaid insurance 167 Equipment 168 Accumulated depreciation-Equipment.. 173 Building....... 174 Accumulated depreciation-Building. 183 Land ...... 201 Accounts payable... 203 Interest payable... Debit $ 5,000 31,100 7,000 40,000 150,000 55,000 Credit $20,000 50,000 16,500 2,500