The following account balances appeared in the Income Statement columns of the work sheet prepared for Liu Company for the year ended December 31, 1999:

Prepare the closing journal entries.

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Income Statement Account Titles Debit Credit Service Revenue 330,000 Advertising Expense 1,350 Salaries Expense 130,000 Utilities Expense 2,250 Insurance Expense Rent Expense Supplies Expense Interest Expense Interest Revenue 900 6,750 2,250 Depreciation Expense-Equipment 4,500 562 1,125 148,562 331,125 Net Income 182,563 331,125 331,125