For the year ended December 31, 2021, Waterway Enterprises Ltd. had the following revenues and expenses: Sales, $740,000; Cost of Goods Sold, $460,000; Operating Expenses, $145,000; and Income Tax Expense, $38,500. The company also declared $25,000 of dividends to the common shareholders on December 27 to be paid on January 15, 2022. Prepare closing entries for Waterway on December 31, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)