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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
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. Revenue: FICK PSYCHOLOGICAL SERVICES, INC. Income Statement For the year ended December 31, current year Counseling revenue Expenses: Advertising expense Salaries expense $ 410,000 $ 1,700 96,000 office supplies expense 1,800 Utilities expense 900 Malpractice insurance expense 8,000 office rent expense 29,000 Continuing education expense 3,000 Depreciation expense: fixtures 4,500 Miscellaneous expense 6,000 Income taxes expense 39,500 Net income 190,400 $ 219,600 Fick's statement of retained earnings indicates that a $7,000 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
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