The following financial information was taken from the books of Zone Health Club, a small spa
and fitness club:
Account Balances as of December 31, 2016
Accounts Receivable $12,450
Accounts Payable 6,200
Salaries Payable 3,150
Cash 36,750
Dividends 2,000
Operating Expense 35,300
Prepaid Rent 1,200
Rent Expense 8,400
Retained Earnings 1/1/2016 41,250
Salaries Expense 14,500
Service Revenue 65,400
Supplies 650
Supplies Expense 3,150
Common Stock 7,000
Unearned Revenue 6,400
Land 15,000
Required

a. Prepare the journal entries necessary to close the temporary accounts at December 31, 2016,
for Zone Health Club.
b. What is the balance in the Retained Earnings account after the closing entries are posted?