Gerdes 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: GERDES PSYCHOLOGICAL SERVICES, INC. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2011 Revenue: Counseling revenue $ 490,000 Expenses: Advertising expense $ 2,100 Salaries expense 91,000 Office supplies expense 1,100 Utilities expense 950 Malpractice insurance expense 6,000 Office rent expense 23,000 Continuing education expense 3,150 Depreciation expense: fixtures 4,500 Miscellaneous expense 6,000 Income taxes expense 31,000 168,800 Net income $ 321,200 The firm's statement of retained earnings indicates that a $7,000 cash dividend was declared and paid during 2011. a. Prepare the necessary closing entries on December 31, 2011. (Omit the "$" sign in your response.) General Journal Debit Credit (Click to select)Miscellaneous expenseOffice supplies expenseContinuing education expenseCounseling revenueDividendsRetained earningsIncome summaryMalpractice insurance expenseDepreciation expense: fixturesUtilities expenseIncome taxes expenseOffice rent expense 490,000 (Click to select)Office supplies expenseMiscellaneous expenseDepreciation expense: fixturesDividendsCounseling revenueOffice rent expenseContinuing education expenseUtilities expenseRetained earningsIncome summaryMalpractice insurance expenseIncome taxes expense 490,000 (Click to select)Office supplies expenseIncome taxes expenseMalpractice insurance expenseDepreciation expense: fixturesContinuing education expenseRetained earningsAdvertising expenseSalaries expenseUtilities expenseIncome summaryMiscellaneous expenseOffice rent expense 168,800 (Click to select)Retained earningsDepreciation expense: fixturesIncome summaryUtilities expenseSalaries expenseMiscellaneous expenseMalpractice insurance expenseIncome taxes expenseAdvertising expenseOffice supplies expenseOffice rent expenseContinuing education expense 2,100 (Click to select)Retained earningsMalpractice insurance expenseMiscellaneous expenseUtilities expenseIncome taxes expenseIncome summaryAdvertising expenseSalaries expenseOffice rent expenseDepreciation expense: fixturesContinuing education expenseOffice supplies expense 91,000 (Click to select)Utilities expenseIncome summaryOffice supplies expenseSalaries expenseContinuing education expenseIncome taxes expenseOffice rent expenseAdvertising expenseRetained earningsDepreciation expense: fixturesMiscellaneous expenseMalpractice insurance expense 1,100 (Click to select)Office rent expenseAdvertising expenseMalpractice insurance expenseDepreciation expense: fixturesMiscellaneous expenseIncome taxes expenseOffice supplies expenseRetained earningsIncome summaryUtilities expenseSalaries expenseContinuing education expense 950 (Click to select)Office supplies expenseSalaries expenseIncome summaryOffice rent expenseIncome taxes expenseMalpractice insurance expenseMiscellaneous expenseRetained earningsContinuing education expenseAdvertising expenseDepreciation expense: fixturesUtilities expense 6,000 (Click to select)Advertising expenseOffice supplies expenseIncome summaryMiscellaneous expenseDepreciation expense: fixturesContinuing education expenseMalpractice insurance expenseOffice rent expenseIncome taxes expenseUtilities expenseRetained earningsSalaries expense 23,000 (Click to select)Depreciation expense: fixturesMiscellaneous expenseIncome taxes expenseOffice rent expenseMalpractice insurance expenseContinuing education expenseIncome summarySalaries expenseAdvertising expenseUtilities expenseRetained earningsOffice supplies expense 3,150 (Click to select)Depreciation expense: fixturesContinuing education expenseIncome taxes expenseRetained earningsOffice rent expenseOffice supplies expenseSalaries expenseMiscellaneous expenseUtilities expenseAdvertising expenseIncome summaryMalpractice insurance expense 4,500 (Click to select)Utilities expenseMalpractice insurance expenseSalaries expenseIncome summaryRetained earningsDepreciation expense: fixturesAdvertising expenseMiscellaneous expenseContinuing education expenseIncome taxes expenseOffice supplies expenseOffice rent expense 6,000 (Click to select)Salaries expenseOffice supplies expenseMiscellaneous expenseMalpractice insurance expenseOffice rent expenseIncome summaryContinuing education expenseAdvertising expenseUtilities expenseIncome taxes expenseDepreciation expense: fixturesRetained earnings 31,000 (Click to select)Utilities expenseIncome taxes expenseDividendsMiscellaneous expenseIncome summaryOffice rent expenseDepreciation expense: fixturesMalpractice insurance expenseContinuing education expenseOffice supplies expenseRetained earningsCounseling revenue 321,200 (Click to select)DividendsCounseling revenueDepreciation expense: fixturesRetained earningsIncome summaryOffice supplies expenseMalpractice insurance expenseContinuing education expenseOffice rent expenseMiscellaneous expenseUtilities expenseIncome taxes expense 321,200 (Click to select)Retained earningsMiscellaneous expenseOffice rent expenseOffice supplies expenseDividendsIncome taxes expenseIncome summaryContinuing education expenseUtilities expenseDepreciation expense: fixturesCounseling revenueMalpractice insurance expense 7,000 (Click to select)Income taxes expenseCounseling revenueOffice rent expenseUtilities expenseMalpractice insurance expenseContinuing education expenseRetained earningsDepreciation expense: fixturesMiscellaneous expenseIncome summaryOffice supplies expenseDividends 7,000 b. If the firm's Retained Earnings account had a $90,000 balance on January 1, 2011, at what amount should Retained Earnings be reported in the firm's balance sheet dated December 31, 2011? (Omit the "$" sign in your response.) Retained Earnings as on December 31, 2011 $