Port Austin Boat Repair Inc. has entered and posted its adjusting entries for 2009. The following are the adjusted account balances:

Sales Revenue ................$578,500

Interest Revenue ............... 8,100

Accounts Payable .............. 8,330

Wages Expense .............. 405,300

Accounts Receivable, 12/31/2009 ....... 65,000

Supplies Expense ............... 65,000

Supplies, 12/31/2009 ............ 179,000

Prepaid Rent ................ 7,200

Rent Expense ............... 28,800

Unearned Revenue ............. 12,200

Insurance Expense ............. 94,300

Wages Payable ................ 11,700

Utilities Expense ................ 14,000

Interest Expense .............. 9,500

Depreciation Expense, Equipment ....... 20,000

Accumulated Depreciation, Equipment .......... 75,000

Income Tax Expense ............. 12,300

Income Tax Payable .............. 8,300

Dividends .................. 7,800

Required:

1. Using the accounts and balances above, prepare the closing entries for 2009.

2. Prepare an income statement for Port Austin Boat Repair Inc.