Exercise 3-58 (Algorithmic) Preparation of Closing Entries James and Susan Morley recently converted a large turn-of-the-century house into a hotel and incorporated the business as Nanaimo Enterprises. Their accountant is inexperienced and has made the following closing entries at the end of Nanaimo's first year of operations: Income Summary 213,000 Service Revenue 180,000 Accumulated Depreciation 33,000 Depreciation Expense Income Tax Expense Utilities Expense Wages Expense Supplies Expense Accounts Payable 33,000 8,200 13,600 66,000 31,000 4,500 Income Summary 156,300 Income Summary 56,700 Retained Earnings 56,700 Dividends Declared 3,200 Income Summary 3,200