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Problem 3-7A (Algo) Preparing financial statements and closing entries LO C2, P5, P6 The adjusted trial balance for Tybalt Construction on December 31 of the current year follows. The Retained Earnings account balance was $126,800 on December 31 of the prior year. Required: 1a. Prepare the income statement for the current year ended December 31. 1b. Prepare the statement of retained earnings for the current year ended December 31 . 1c. Prepare the classified balance sheet at December 31 of the current year. 2. Prepare the necessary closing entries at December 31 of the current year. Complete this question by entering your answers in the tabs below. Prepare the income statement for the current year ended December 31 . Complete this question by entering your answers in the tabs below. Prepare the statement of retained earnings for the current year ended December 31 . Trepare the necessary closing entries at December 31 of the current year. Journal entry worksheet Record the entry to close the revenue account(s). Note: Enter debits before credits. Prepare the necessary closing entries at December 31 of the current year. Journal entry worksheet Record the entry to close the expense account(s). Note: Enter debits before credits. Prepare the necessary closing entries at December 31 of the current year. Journal entry worksheet Record the entry to close the Income summary account. Note: Enter debits before credits. Trepare the necessary closing entries at December 31 of the current year. Journal entry worksheet Record the entry to close the dividends account. Note: Enter debits before credits