1. Record the closing entry (to reset income statement accounts).
2. Prepare a balance sheet and income statement for the year ended December 31, 2017. Start with the income statement. Remember that the retained earnings on the ending balance sheet should already incorporate the closing entry.

Roni Inc. repairs cellular phones. Roni Inc.'s fiscal period ends on December 31. Below is Roni Inc.'s trial balance on January 1, 2017: Credit Debit 10,500 4,800 3,200 14,600 Account title Cash Accounts receivable Supplies Equipment Accumulated depreciation (on equipment) Accounts payable Note payable Wages payable Interest payable Income taxes payable Unearned revenue Common stock (100,000 shares, $0.001 par value) Additional paid-in capital Retained earnings Service revenue Depreciation expense Wages expense Supplies expense Interest expense Income tax expense 4,380 1,200 0 800 0 0 2,500 100 3,000 21,120 0 0 0 0 0 0 In addition, the following transactions occurred in 2017: (a) (b) (c) (d) Purchased new equipment for $3,000 in cash. Depreciation expense in 2017 for new and existing equipment is $2,000. Borrowed $5,000 on April 1, 2017, signing a one-year 6% note payable. The interest will be paid on March 31, 2018. Issued 20,000 shares for $1,000 in cash on January 1, 2017. Earned $5,000 revenues during 2017. $4,000 in cash and the rest on account. In addition to (d), earned $2,500 revenues for which Roni Inc. was given a deposit in 2016. Received a $1,000 down payment for services to be provided in 2018. Paid $800 to employees for work performed in 2016. Wages expense in 2017 was $5,000. $4,500 was paid in 2017. The remaining $500 will be paid in 2018. Purchased $800 of supplies on account. Supplies at the end of 2017 were $2,500 (you need to record the purchase and the supplies expense). Tax expense for the year was $750, to be paid in 2018. (f) (h) (i) 6)