Ferraro Consulting provides risk management services to individuals and to coorporate clients.The company closes its temporary accounts once each year on December 31. The Company recently issued the following income statement as part of its annual report Ferraro Consulting income statement For the year Ended December 31,2007 Revenue Consulting Revenue-individual client.............................................. $ 40,000 Consulting Revenue-individual client.............................................. 160,000 = $ 200,000 Expenses Advertising Expense..............................................$ 16,000 Depriciation expense :computers..............................$ 24,000 Rent Expense......................................................$ 9,600 Office supplies expense......................................... $ 4,400 Travel Expense....................................................$ 57,800 Utilities Expense..................................................$ 3,300 Telephone & Internet Expense.................................$ 1,900 Salaries Expense..................................................$155,500 Interest Expense................................................. $ 2,500 275,000 $(75,000) The firm's statement of retained earnings indicates that a $25,000 cash dividend was declaared and paid in 2007 (a) Prepare the necessary closing entries on December 31,2007 (b) If the firm's Retained Earnigs account had a $300,000 balance on jan 1,2007, at what amount should Retained Earnings be reported in the firm's balance sheet dated december 31st,2007