Use the following income statement to prepare the fiscal year end closing entries.

O’Brien Co.

Income Statement

For the Year Ended April 30, 2010

Sales revenues

Sales ...................$100,000

Less: Sales returns and allowances ........ $1,000

Net sales ................. 99,000

Cost of goods sold ............. 50,000

Gross profit ................ 49,000

Operating expenses

Salary expense ................ 20,000

Rent expense ................ 7,500

Insurance expense .............. 1,000

Freight-out ................ 1,500

Total operating expenses ........... 30,000

Net income ................. $19,000