Exercise 3-21A (Algo) Preparing closing entries LO 3-4

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	$28,100
Accounts Payable	7,630
Salaries Payable	11,800
Cash	41,400
Dividends	5,200
Operating Expenses	2,870
Prepaid Rent	3,900
Rent Expense	7,300
Retained Earnings, Beginning	21,000
Salaries Expense	33,500
Service Revenue	71,240
Supplies	580
Supplies Expense	2,430
Common Stock	21,900
Unearned Revenue	6,510
Land	14,800

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