This alphabetized adjusted trial balance is for GalaVu Entertainment as of its December 31, 2014, year-end.

Required
Use the information in the trial balance to prepare:
a. The income statement for the year ended December 31, 2014.
b. The statement of changes in equity for the year ended December 31, 2014, assuming that the owner made additional investments of $15,000 during the year.
c. The balance sheet as of December 31, 2014.
Analysis Component: The owner, John Conroe, is very pleased with the change in the business's financial position. Specifically, he noted that his equity increased. "My banker told me that as long as equity is increasing, my business is doing great." Comment.

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DebitCredit S 44,000 Accounts payable Accounts receivable Accumulated depreciation, automobile Accumulated depreciation, equipment... Advertising expense 18,700 69,000 20,500 9,000 140,000 11,000 Cash Depreciation expense, automobiles.13,200 Depreciation expense, equipment Equipment. 4,100 65,000 240,000 150 Interest earned Interest expense Interest payable Interest receivable John Conroe, capital John Conroe, withdrawa.s..19,000 Land Long-term notes payable Notes receivable (due in 90 days.. Office supplies.... Office supplies expense. 13,000 Repairs expense, automobile 3,500 75 300 23,000 35,000 115,000 80,000 4,000 8,400 5,500 11,000 Salaries payable. Unearned fees Wages expense Totals 27,800 .. $528,225 $528,225