Security Specialists performs security services for local businesses. During 2009, Security Specialists performed $900,000 of security services and collected $930,000 cash from customers. Security Specialist's employees earned salaries of $42,000 per month. During 2009, Security Services paid salaries of $495,000 cash for work performed. At the beginning of 2009, Security Specialists had $3,000 of supplies on hand. Supplies of $80,000 were purchased during the year, and $11,000 of supplies were on hand at the end of the year. Other general and administrative expenses incurred during the year were $31,000.

Required:

1. Calculate revenue for 2009.

2. Calculate expenses for 2009.

3. Prepare the 2009 income statement.

4. Describe the accounting principles used to prepare the income statement.