The following selected accounts and balances appear on the adjusted trial balance for Waverly, Inc., on July 31, 2018:

Service Revenue ........................................$1,800
Rent Expense ..................................................650
Salaries Expense ............................................575
Dividends ........................................................300
Common Stock ..........................................25,000
Retained Earnings .......................................4,100

1. What is the net income or net loss?

2. What is the change in Retained Earnings?

3. Journalize the closing entries required.