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, 2015

Revenue:

Counseling revenue $225,000

Expenses:

Advertising expense $1,800

Salaries expense 94,000

Office supplies expense 1,200

Utilities expense 850

Malpractice insurance expense 6.000

Office rent expense 24,000

Continuing education expense 2,650

Depreciation expense: fixtures 4,500

Miscellaneous expense 6,000

Income taxes expense 29,400 170,400

__________________

Net income $54,600

The firm's statement of retained earnings indicates that a $6,000 cash dividend was declared and paid during 2015.

a. Prepare the necessary closing entries on December 31, 2015.

b. If the firm's Retained Earnings account had a $ 92,000 balance on January 1, 2015, at what amount should Retained Earnings be reported in the firm's balance sheet dated December 31, 2015?