The following account balances appeared in the Income Statement columns of the work sheet prepared for Liu Company for the year ended December 31, 2012:

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 900 Rent Expense 6,750 Supplies Expense 2,250 Depreciation Expense-Equipment 4,500 Interest Expense 562 Interest Revenue Net Income 1,125 148,562 331,125 182,563 331,125 331,125