Exercise 3-60 (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 Saginaw Enterprises. Their accountant is inexperienced and has made the following closing entries at the end of Saginaw's first year of operations: Income Summary 201,000 Service Revenue 168,000 Accumulated Depreciation 33,000 Depreciation Expense 33,000 Income Taxes Expense 8,200 Utilities Expense 12,100 Wages Expense 66,000 Supplies Expense 31,000 Accounts Payable 4,500 Income Summary 154,800 Income Summary 46,200 Retained Earnings 46,200 Dividends 3,200 Income Summary 3,200 Required: Prepare the correct closing entries. Assume that all necessary accounts are presented above and that the amounts given are correct. If an amount box does not require an entry, leave it blank. Dec. 31 Service Revenue 168,000 Income Summary 168,000 (Close revenue account) Dec. 31 Income Summary Depreciation Expense Income Taxes Expense Utilities Expense Wages Expense Supplies Expense (Close expense accounts) Dec. 31 Income Summary Retained Earnings (Close Income Summary) Dec. 31 Retained Earnings Dividends (Close Dividends)