PROBLEM # 7 Closing entries: analysis of data: income statement. The work sheet of Lettis Company showed that the December 31, 1978, ending capital balance for J. B. Lettis amounted to $93,200, which included a net increase of $18,000 from the beginning capital balance of $75,200. Revenues for the year totaled $153,000, including: Service revenue of $150,000 and Miscellaneous revenue of $3,000. Expense amounted to $128,000, including: Salaries of $70,000, Utilities expense of $2,000, Rent expense of $12,000. Office supplies expense of $4,000, Depreciation expense of $8,000, Interest expense of $3,000, and Store supplies expense of $29,000. REQUIRED a. From the data given, prepare closing entries. b. Prepare an income statement for Lettis Company for the year ended December 31, 1978