Business, 07.04.2020 04:50 uliseshinojosa8

Gerdes Psychological Services, Inc., closes its temporary accounts once each year on December 31. The company recently issued the following income statement as part of its annual report:
GERDES PSYCHOLOGICAL SERVICES, INC.
Income Statement
For the year ended December 31, current year

Revenue:
Counseling revenue $ 320,000
Expenses:
Advertising expense $ 2,000
Salaries expense 94,000
Office supplies
expense 2,600
Utilities expense 1,000
Malpractice insurance
expense 7,000
Office rent expense 29,000
Continuing education
expense 2,200
Depreciation expense:
fixtures 3,500
Miscellaneous
expense 7,000
Income taxes expense 33,000 181,300
Net income $ 138,700

The firm's statement of retained earnings indicates that a $7,000 cash dividend was declared and paid during the current year.

a. Prepare the necessary closing entries on December 31, current year.

b. If the firm's Retained earnings account had a $91,000 balance on January 1, current year, at what amount should Retained earnings be reported in the firm's balance sheet dated December 31, current year

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Gerdes Psychological Services, Inc., closes its temporary accounts once each year on December 31. Th...

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