Ali Pool Power, Inc., provides swimming pool services to both commercial and residential customers. The company performs adjusting entries on a monthly basis, whereas closing entries are prepared annually at December 31. An adjusted trial balance dated December 31, 2018, follows.

Ali POOL POWER, INC.

Adjusted Trail Balance

December 31, 2018

	Debits	Credits
Cash	Rs. 30,000
Accounts receivable	5,000
Unexpired insurance	9,000
Prepaid rent	3,000
Supplies	2,000
Trucks	115,000
Accumulated depreciation; trucks		Rs. 70,000
Equipment	30,000
Accumulated depreciation; equipment		17,000
Accounts payable		3,000
Notes payable		35,000
Salaries payable		1000
Interest payable		2000
Income taxes payable		5,000
Unearned service revenue		1,000
Capital stock		15,000
Retained earning		27,000
Dividends	4,000
Service revenue earned		180,000
Insurance expense	6,000
Office rent expense	32,000
Supplies expense	4,000
Salary expense	65,000
Depreciation expense; trucks	20,000
Depreciation expense; equipment	4,000
Repair and maintenance expense	5,000
Fuel expense	7,000
Miscellaneous expense	4,000
Interest expense	3,000
Income taxes expense	8,000
	Rs. 356,000	Rs. 356,000

Requirement

a. Prepare an income statement and statement of retain earnings for the year ended December 31, 2018. Also prepare the companys balance sheet dated December 31, 2018.

b. Prepare the necessary year-end closing entries.

c. Prepare an after-closing trial balance.