Exercise 5.7 (Algo) Closing Entries of a Profitable Company (LO5-2, LO5-4) Fick Psychological Services, Inc., closes its temporary accounts once each year on December 31. The company recently issued the following income statement as part of its annual report $ 340,000 FICK PSYCHOLOGICAL SERVICES, INC. Income Statement For the year ended December 31, current year Revenue: : Counseling revenue Expenses: Advertising expense $ 1,900 Salaries expense 92,000 Office supplies expense 1,800 Utilities expense 850 Malpractice insurance expense 5,000 Office rent expense 28,000 Continuing education expense 2,950 Depreciation expense: fixtures 3,500 Miscellaneous expense 5,000 Income taxes expense 33,00 Net income 174,000 $ 166,800 Fick's statement of retained earnings indicates that a $5,000 cash dividend was declared and paid during the current year. a. Prepare the necessary closing entries on December 31 of the current year. b. If Fick's Retained earnings account had a $93.000 balance on at the beginning of the current year, at what amount should Retained Earnings be reported in the firm's year-end balance sheet dated December 31? Complete this question by entering your answers in the tabs below. Required A Required B Prepare the necessary closing entries on December 31 of the current year. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 > Record the entry to close the revenue account. . Note: Enter debits before credits : . Transaction General Journal Debit Credit 1 Record entry Clear entry View general joumal Requid Required B Exercise 5.7 (Algo) Closing Entries of a Profitable Company (L05-2, LO5-4) Fick Psychological Services, Inc., closes its temporary accounts once each year on December 31. The company recently issued the following income statement as part of its annual report. $ 340,000 FICK PSYCHOLOGICAL SERVICES, INC. Income Statement For the year ended December 31, current year Revenue: Counseling revenue Expenses : Advertising expense $ 1,900 Salaries expense 92,000 Office supplies expense 1,800 Utilities expense 850 Malpractice insurance expense 5,000 Office rent expense 28,000 Continuing education expense 2,950 Depreciation expense: fixtures 3,500 Miscellaneous expense 5,000 Income taxes expense 33,000 Net income 174,000 $ 166,000 Fick's statement of retained earnings indicates that a $5,000 cash dividend was declared and paid during the current year. a. Prepare the necessary closing entries on December 31 of the current year. b. If Fick's Retained earnings account had a $93,000 balance on at the beginning of the current year, at what amount should Retained Earnings be reported in the firm's year-end balance sheet dated December 31? Required A A Required B Prepare the necessary dosing entries on December 31 of the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 > Record the entry to close expense accounts. Nota: Enter debits before credits General Journal Debit Credit Transaction 2. Record entry Clear entry View general joumal Exercise 5.7 (Algo) Closing Entries of a Profitable Company (LO5-2, LO5-4) Fick Psychological Services, Inc., closes its temporary accounts once each year on December 31. The company recently issued the following income statement as part of its annual report. $ 340,000 FICK PSYCHOLOGICAL SERVICES, INC. Income Statement For the year ended December 31, current year Revenue: Counseling revenue Expenses: Advertising expense $ 1,900 Salaries expense 92,000 Office supplies expense 1,800 Utilities expense 850 Malpractice insurance expense 5,000 Office rent expense 28,000 Continuing education expense 2,950 Depreciation expense: fixtures 3,500 Miscellaneous expense Income taxes expense 33,000 Net income 5,000 174,000 $ 166,000 Fick's statement of retained earnings indicates that a $5,000 cash dividend was declared and paid during the current year. a. Prepare the necessary closing entries on December 31 of the current year. b. If Fick's Retained earnings account had a $93,000 balance on at the beginning of the current year, at what amount should Retained Earnings be reported in the firm's year-end balance sheet dated December 31? Required A Required B Prepare the necessary closing entries on December 31 of the current year. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet Record the transfer of Net income/loss. Note: Enter debits before credits General Journal Debit Credit Transaction 3 Record entry Clear entry View general journal Requod Required B > Exercise 5.7 (Algo) Closing Entries of a Profitable Company (L05-2, LO5-4) Fick Psychological Services, Inc., closes its temporary accounts once each year on December 31. The company recently issued the following income statement as part of its annual report $ 340,000 FICK PSYCHOLOGICAL SERVICES, INC. Income Statement For the year ended December 31, current year Revenue : Counseling revenue Expenses: Advertising expense $ 1,900 Salaries expense 92,000 Office supplies expense 1,800 Utilities expense 850 Malpractice insurance expense 5,000 Office rent expense 28,000 Continuing education expense 2,950 Depreciation expense: fixtures 3,500 Miscellaneous expense 5,000 Income taxes expense 33,000 Net income 174,000 $ 166,000 Fick's statement of retained earnings indicates that a $5,000 cash dividend was declared and paid during the current year. a. Prepare the necessary closing entries on December 31 of the current year. b. If Fick's Retained earnings account had a $93,000 balance on at the beginning of the current year, at what amount should Retained Earnings be reported in the firm's year-end balance sheet dated December 31? Required A Required B Prepare the necessary closing entries on December 31 of the current year. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction ist Journal entry worksheet Record the entry to close dividends. Note: Enter debits before credits General Journal Debit Credit Transaction 4 Record entry Clear entry View general journal Reco Required B. > Exercise 5.7 (Algo) Closing Entries of a Profitable Company (LO5-2, LO5-4) Fick Psychological Services, Inc., closes its temporary accounts once each year on December 31. The company recently issued the following income statement as part of its annual report. $ 340,000 FICK PSYCHOLOGICAL SERVICES, INC. Income Statement For the year ended December 31, current year Revenue : Counseling revenue Expenses: Advertising expense $ 1,900 Salaries expense 92,000 Office supplies expense 1,800 Utilities expense 850 Malpractice insurance expense 5,000 Office rent expense 28,000 Continuing education expense 2,950 Depreciation expense: fixtures 3,500 Miscellaneous expense 5,000 Income taxes expense 33,000 Net income 174,000 $ 166,000 Fick's statement of retained earnings indicates that a $5,000 cash dividend was declared and paid during the current year. a. Prepare the necessary closing entries on December 31 of the current year. b. If Fick's Retained earnings account had a $93,000 balance on at the beginning of the current year, at what amount should Retained Earnings be reported in the firm's year-end balance sheet dated December 31? Complete this question by entering your answers in the tabs below. Required A Required B If Fick's Retained earnings account had a $93,000 balance on at the beginning of the current year, at what amount should Retained Earnings be reported in the firm's year-end balance sheet dated December 31? Retained earnings, December 31, current year