The income statement for the Four Oaks Golf Club Inc. for the month ended July 31 shows Service Revenue $16,000; Salaries and Wages Expense $8,400; Maintenance and Repairs Expense $2,500; and Income Tax Expense $1,000. The statement of retained earnings shows an opening balance for Retained Earnings of $20,000 and Dividends

$1,300.

(a) Prepare closing journal entries.

(b) What is the ending balance in Retained Earnings?

AppendixLO1