A partial work sheet for The Fan Shop is presented here. The merchandise inventory at the beginning of the year was $ 52,300. P. G. Ochoa, the owner, withdrew $ 30,500 during the year.

Required
1. Prepare an income statement.
2. Journalize the closingentries.

The Fan Shop Work Sheet For Year Ended December 31, 20- INCOME STATEMENT DEBIT ACCOUNT NAME 24 Sales CREDIT 324,000.00 2s Sales Retums and Allowances 3400.00 2,707.00 26 Sales Discounts -2 purchases 30FreightIn 27 InterestInome 1,830.00 201490,00 29 Purchase Returns and Allowances 2,880.00 31 Weges Expense 32 Rent Expense 33 Commissions Expense 9,790.00 46,24000 12,610.00 8,310.00 1,842.00 854.00 les 3Interest Expense 523000054,580.00 37 Insurance 38Depreciation Expense, Building 9 Deprecistion Expense, Equipment 40 41 42 Net noome 1,240.00 4,600.00 2,600.00 347,983.00 383,290.00 35.307.00 383,280.00 333.290.00