E3-28A. (Learning Objective 5: Closing the accounts) Prepare the closing entries from the following selected accounts from the records of Sunnyside Corporation at December 31, 20X8:

How much net income did Sunnyside earn during 20X8? Prepare a T-account for Retained Earnings to show the December 31, 20X8, balance of Retained Earnings.

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Cost of services sold. $11,500 Service revenue....... $24,900 Accumulated depreciation... 42,800 Depreciation expense. 4,800 Selling, general, and Other revenue. 800 administrative expenses.... 6,200 Dividends.. 900 Retained earnings, Income tax expense 500 December 31, 20X5. 2,600 Income tax payable. 700