The adjusted trial balance of Karise Repairs on December 31 follows. KARISE REPAIRS Adjusted Trial Balance...

Transcribed Image Text:

The adjusted trial balance of Karise Repairs on December 31 follows. KARISE REPAIRS Adjusted Trial Balance December 31 Number Account Title Credit Debit $ 26,000 101 Cash 124 Office supplies 2,000 128 Prepaid insurance 2,550 167 Equipment 54,000 168 Accumulated depreciation-Equipment $ 5,400 13,000 201 Accounts payable 210 Wages payable 1,400 301 C. Karise, Capital 34,000 302 C. Karise, Withdrawals 16,500 403 Services revenue 106,550 612 Depreciation expense-Equipment 5,400 623 Wages expense 35,000 637 Insurance expense 900 640 Rent expense 10,500 650 Office supplies expense 4,300 690 Utilities expense 3,200 Totals $ 160,350 $ 160,350 Note: C. Karise, Capital account balance was $34,000 on December 31 of the prior year, and there were no owner investments during the year. Required: 1a. Prepare an income statement for the year. 1b. Prepare a statement of owner's equity for the year. 1c. Prepare a classified balance sheet at December 31. 2. Prepare the December 31 closing entries. The adjusted trial balance of Karise Repairs on December 31 follows. KARISE REPAIRS Adjusted Trial Balance December 31 Number Account Title Credit Debit $ 26,000 101 Cash 124 Office supplies 2,000 128 Prepaid insurance 2,550 167 Equipment 54,000 168 Accumulated depreciation-Equipment $ 5,400 13,000 201 Accounts payable 210 Wages payable 1,400 301 C. Karise, Capital 34,000 302 C. Karise, Withdrawals 16,500 403 Services revenue 106,550 612 Depreciation expense-Equipment 5,400 623 Wages expense 35,000 637 Insurance expense 900 640 Rent expense 10,500 650 Office supplies expense 4,300 690 Utilities expense 3,200 Totals $ 160,350 $ 160,350 Note: C. Karise, Capital account balance was $34,000 on December 31 of the prior year, and there were no owner investments during the year. Required: 1a. Prepare an income statement for the year. 1b. Prepare a statement of owner's equity for the year. 1c. Prepare a classified balance sheet at December 31. 2. Prepare the December 31 closing entries.

Answer rating: 100% (QA)

1a Prepare an income statement for the year KARISE REPAIRS Income Statement for the year ended Decem... View the full answer