PREPARATION OF CLOSING ENTRIES AND AN INCOME STATEMENT Round Grove Alarm Company provides security services to homes in northwestern Indiana. At year-end 2009, after adjusting entries have been made, the following list of account balances is prepared:

Accounts Receivable $ 37,000 Accounts Payable 23,000 Accumulated Depreciation, Equipment 124,000 Common Stock 150,000 Depreciation Expense, Equipment 42,000 Dividends 6,000 Equipment 409,500 Income Tax Expense 24,300 Income Taxes Payable 24,300 Interest Expense 4,800 Notes Payable (due in 2012) 34,000 Other Assets 7,700 Prepaid Rent 5,000 Rent Expense 30,000 Retained Earnings, 12/31/2008 29,400 Salaries Payable 12,600 Salaries Expense $144,000 Service Revenue 605,500 Supplies Expense 51,900 Supplies Inventory 12,700 Utilities Expense 48,800 Wages Expense 186,500 Wages Payable 7,400 Required:

. Prepare closing entries for Round Grove Alarm Company.

. Prepare an income statement for Round Grove Alarm Company.