Rae Services, Inc. provides healthcare diagnostics for patients with autoimmune diseases. At the end of their first year of operations, Rae Services account balances are shown in the adjusted trial balance shown below: 

Rae Services, Inc. Adjusted Trial Balance December 31, 2012
Cash	172,500
Accounts receivable	139,000
Supplies	4,650
Prepaid insurance	2,600
Equipment	85,400
Accumulated depreciation--Equipment		3,400
Accounts payable		70,000
Common stock		245,000
Retained earnings		130,000
Dividends	75,000
Service revenue		215,583
Advertising expense	2,575
Depreciation expense--Equipment	3,400
Insurance expense	1,400
Rent expense	9,600
Salaries expense	163,000
Supplies expense	1,525
Utilities expense	3,333
	663,983	663,983

a) Prepare closing entries.

Journal

Date	Description	Debit	Credit

b) Prepare a post-closing Trial Balance

Rae Services, Inc.
Post-closing Trial Balance
December 31, 2012

Accounts	Debits	Credits
Total	Single lineDouble line	Single lineDouble line

c) Prepare an Income Statement

Rae Services, Inc.
Income Statement
December 31, 2012

Description	Amount	Total
Subcategory, Assets:Current Assets:Expenses:Liabilities:Property, Plant, & Equipment:Stockholder's Equity:
	Single line	Single line
Net IncomeTotal AssetsTotal Current AssetsTotal ExpensesTotal LiabilitiesTotal Liabilities & Stockholder's EquityTotal Property, Plant, & EquipmentTotal Stockholder's Equity		Single lineSingle line
Net IncomeTotal AssetsTotal Current AssetsTotal ExpensesTotal LiabilitiesTotal Liabilities & Stockholder's EquityTotal Property, Plant, & EquipmentTotal Stockholder's Equity		Single lineDouble line

d) Prepare a Balance Sheet

Rae Services, Inc.
Balance Sheet
December 31, 2012

Description	Amount	Total
Subcategory, Assets:Current Assets:Expenses:Liabilities:Property, Plant, & Equipment:Stockholder's Equity:
Subcategory, Assets:Current Assets:Expenses:Liabilities:Property, Plant, & Equipment:Stockholder's Equity:
	Single line	Single line
Net IncomeTotal AssetsTotal Current AssetsTotal ExpensesTotal LiabilitiesTotal Liabilities & Stockholder's EquityTotal Property, Plant, & EquipmentTotal Stockholder's Equity		Single line
Subcategory, Assets:Current Assets:Expenses:Liabilities:Property, Plant, & Equipment:Stockholder's Equity:
	Single line	Single line
Net IncomeTotal AssetsTotal Current AssetsTotal ExpensesTotal LiabilitiesTotal Liabilities & Stockholder's EquityTotal Property, Plant, & EquipmentTotal Stockholder's Equity		Single lineSingle line
Net IncomeTotal AssetsTotal Current AssetsTotal ExpensesTotal LiabilitiesTotal Liabilities & Stockholder's EquityTotal Property, Plant, & EquipmentTotal Stockholder's Equity		Single line
Subcategory, Assets:Current Assets:Expenses:Liabilities:Property, Plant, & Equipment:Stockholder's Equity:
Subcategory, Assets:Current Assets:Expenses:Liabilities:Property, Plant, & Equipment:Stockholder's Equity:
	Single line	Single line
Net IncomeTotal AssetsTotal Current AssetsTotal ExpensesTotal LiabilitiesTotal Liabilities & Stockholder's EquityTotal Property, Plant, & EquipmentTotal Stockholder's Equity		Single lineSingle line
Net IncomeTotal AssetsTotal Current AssetsTotal ExpensesTotal LiabilitiesTotal Liabilities & Stockholder's EquityTotal Property, Plant, & EquipmentTotal Stockholder's Equity		Single line

e) Prepare a Statement of Retained Earnings

Rae Services, Inc.
Statement of Retained Earnings
December 31, 2012

Description	Amount
Add: DividendsAdd: Net IncomeLess: DividendsLess: Net IncomeRetained Earnings, beginning balanceRetained earnings, ending balance
Add: DividendsAdd: Net IncomeLess: DividendsLess: Net IncomeRetained Earnings, beginning balanceRetained earnings, ending balance	Single line
	Single line
Add: DividendsAdd: Net IncomeLess: DividendsLess: Net IncomeRetained Earnings, beginning balanceRetained earnings, ending balance	Single line
Add: DividendsAdd: Net IncomeLess: DividendsLess: Net IncomeRetained Earnings, beginning balanceRetained earnings, ending balance	Single line