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1. Prepare in good format, an income statement.
2. Prepare in good format, a statement of owners equity.
3. Prepare a classified year-end balance sheet. (Note: A $9,000 installment on the long-term note payable is due within one year.)
| Account | Debit | Credit |
| Cash | $ 112,000 | |
| Accounts receivable | 27,000 | |
| Prepaid rent | 15,000 | |
| Prepaid Insurance | 9,000 | |
| Office supplies | 3,300 | |
| Office equipment | 38,000 | |
| Accumulated depreciationEquipment | | $3,200 |
| Building | 288,000 | |
| Accumulated depreciationBuilding | | 42,000 |
| Land | 700,000 | |
| Accounts payable | | 25,800 |
| Salaries payable | | 14,500 |
| Interest payable | | 2,500 |
| Long-term note payable | | 72,000 |
| P. Blessinger, Capital | | 910,000 |
| P. Blessinger, Withdrawals | 200,500 | |
| Service fees earned | | 430,800 |
| Salaries expense | 90,000 | |
| Insurance expense | 5,200 | |
| Rent expense | 5,000 | |
| Depreciation expenseEquipment | 800 | |
| Depreciation expenseBuilding | 7,000 | |
| Totals |
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