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, current year Revenue: Counseling revenue $ 250,000 Expenses: Advertising expense $ 2,000 Salaries expense 99,000 Office supplies expense 2,300 Utilities expense 900 Malpractice insurance expense 5,000 Office rent expense 29,000 Continuing education expense 2,450 Depreciation expense: fixtures 5,000 Miscellaneous expense 6,000 Income taxes expense 32,500 184,150 Net income $ 65,850 The firm'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, current year. b. lfthe firm's Retained earnings account had a $97,000 balance on January 1, current year, at what amount should Retained earnings be reported in the firm's balance sheet dated December 31, current year? Complete this question by entering your answers in the tabs below. Required A Required B Prepare the necessary closing entries on December 31, current year. (If no entry is req entry required" in the first account field.) View transaction list Journal entry worksheet 2 3 4 Record the entry to close the revenue account. Note: Enter debits before credits. Transaction General Journal Debit Credit 1View transaction list Journal entry worksheet