Round Grove Alarm Company provides security services to homes in northwestern Indiana. At year-end 2011, after adjusting entries have been made, the following list of account balances is prepared:

Required:
1. Prepare closing entries for Round Grove Alarm.
2. Prepare an income statement for Round Grove Alarm.

Transcribed Image Text:

$ 4,750 27,600 24,000 Retained Earnings, 12/31/2010 29,400 12,600 148,250 612,900 51,900 12,700 48,800 183,500 7,950 Accounts Receivable Accounts Payable Accumulated Depreciation (Equipmen $ 36,800 Prepaid Rent 23,250 Rent Expense 150,000 Salaries Payable 45,300 Salaries Expense 6,000 Service Revenue 409,500 Supplies Expense Depreciation Expense (Equipment) Dividends Equipment Income Taxes Expense Income Taxes Payable Interest Expense Notes Payable due in 2014) Other Assets 30,800 Supplies 24,300 Utilities Expense 4,800 Wages Expense 34,000 Wages Payable 7,700