PREPARATION OF CLOSING ENTRIES Grand Rapids Consulting, Inc., began 2009 with a retained earnings balance of $38,100 and has the following accounts and balances at year-end:

Sales Revenue $155,000 Salaries Expense 83,000 Rent Expense 15,000 Utilities Expense 7,900 Office Supplies Expense 4,200 Income Taxes Expense 12,300 Dividends (declared and paid) 16,400 Required:

. Prepare the closing entries made by Grand Rapids Consulting at the end of 2009.

. Prepare Grand Rapids Consulting’s statement of retained earnings for 2009.

Exercise