Donald Reagan owns and manages a consulting firm called The DR Consulting Company, which began operations on November 1. On December 31, DR Consulting shows the following selected accounts and amounts for the month of December.

Equipment	$ 130,400	Supplies	$ 5,070
Salaries expense	19,690	Rental revenue	480
Buildings	217,680	Land	93,000
Interest revenue	60	Interest expense	1,560
Consulting revenue	39,150	Insurance expense	560
Cash	30,205	Prepaid insurance	2,855
Utilities expense	2,495	Accounts payable	7,800
Note payable	176,750	Note receivable	13,000
Accounts receivable	3,310	Rent expense	1,425
Common stock	305,037	Unearned revenue	3,340
Cash Dividends	1,190	Interest receivable	60
Accumulated Depreciation - Equipment	1,990	Accumulated Depreciation - Buildings	907
Salaries payable	1,500	Interest payable	1,560
Income tax payable	1,600	Income tax expense	1,600
Depreciation expense	2,897	Supplies expense	13,177

Required:

1. Prepare a December income statement for the business.
2. Prepare a December statement of retained earnings. The Retained Earnings account balance at November 1 was $0, and the owner invested $305,037 cash in the company on November 1 in exchange for common stock.
3. Prepare a December 31 balance sheet.
4. Prepare the 4 closing entries in the area at the bottom of this page.