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					$	470,000
Expenses:
Advertising expense	$	2,400
Salaries expense		94,000
Office supplies expense		2,700
Utilities expense		850
Malpractice insurance expense		6,000
Office rent expense		27,000
Continuing education expense		2,650
Depreciation expense: fixtures		3,500
Miscellaneous expense		8,000
Income taxes expense		27,500				174,600
Net income					$	295,400

The firm's statement of retained earnings indicates that a $5,000 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 $92,000 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?