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					$	420,000
Expenses:
Advertising expense	$	2,000
Salaries expense		95,000
Office supplies expense		1,900
Utilities expense		850
Malpractice insurance expense		7,000
Office rent expense		25,000
Continuing education expense		2,400
Depreciation expense: fixtures		5,000
Miscellaneous expense		8,000
Income taxes expense		33,000				180,150
Net income					$	239,850

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

a. Prepare the necessary closing entries on December 31, current year.

b. If the firm's Retained earnings account had a $94,000 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?

Prepare the necessary closing entries on December 31, current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

If the firm's Retained earnings account had a $94,000 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?