Exercise 13-21A (Algo) Preparing closing entries LO 13-4

The following financial information was taken from the books of Zone Health Club, a small spa and fitness club:

Account Balances as of
December 31, Year 2
Accounts receivable	$ 26,400
Accounts payable	7,980
Salaries payable	11,400
Cash	41,900
Dividends	4,800
Operating expense	2,150
Prepaid rent	2,500
Rent expense	7,700
Retained Earnings 1/1/Year 2	20,300
Salaries expense	33,500
Service revenue	70,140
Supplies	500
Supplies expense	2,950
Common stock	19,000
Unearned revenue	6,580
Land	13,000

Required

1. Prepare the journal entries necessary to close the temporary accounts at December 31, Year 2, for Zone Health Club.
2. What is the balance in the Retained Earnings account after the closing entries are posted?

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• Required B

What is the balance in the Retained Earnings account after the closing entries are posted?

Retained Earnings, Year 2
Beginning retained earnings
Ending retained earnings