The Nealy Company has prepared the following alphabetical adjusted trial balance on December 31, 2007:

Required
Prepare the following 2007 items in proper form for the Nealy Company:
(1) The income statement,
(2) The retained earnings statement,
(3) The ending balance sheet, and
(4) The closing entries in the general journal.

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Debit Credit S6,400 Accounts payable Accounts receivable Accumulated depreciation: buildings Accumulated depreciation: equipment Additional paid-in capital Administrative expenses Allowance for doubtful accounts Buildings Capital stock, $1 par (4,000 shares) Cash Cost of goods sold Current income taxes payable Dividends distributed Equipment 5,700 19,000 11,000 15,000 6,500 600 42,000 4,000 5,000 27,400 4,035 2,400 22,000 Debit Credit 4,035 650 Income tax expense Interest expense Interest payable (due July 1, 2008) Invento Land Notes payable (due July 1, 2011) Rent revenue Retained earnings, January 1, 2007 Sales returns Sales revenue Selling expenses Unearned rent Unexpired insurance Wages payable 650 10,800 6,800 ry 0,000 2,800 14,500 4,900 9,700 1,600 59,800 700 1,000 $149,485 $149,485