Security Specialists performs security services for local businesses. During 2019, Security Specialists performed $1,425,700 of security services and collected $1,445,000 cash from customers. Security Specialist's employees earned salaries of $82,350 per month. During 2019, Security Services paid salaries of $980,200 cash for work performed. At the beginning of 2019, there were $2,875 of supplies on hand. Supplies of $65,800 were purchased during the year, and $9,225 of supplies were on hand at the end of the year. Other general and administrative expenses incurred during the year were $26,500.

Required:

1. Calculate revenue and expenses for 2019.

2. Prepare the 2019 income statement.

3. Describe the accounting principles used to prepare the income statement?