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:

Revenue:

Counseling revenue $350,000

Expenses:

Advertising expense$ 2,000

Salaries expense 96,000

Office supplies expense 2,500

Utilities expense 900

Malpractice insurance expense 5,000

Office rent expense 24,000

Continuing education expense 2,850

Depreciation expense: fixtures 3,500

Miscellaneous expense 7,000

Income taxes expense 40,000 183,750

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Net income $166,250

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The firm's statement of retained earnings indicates that a $6,000 cash dividend was declared and paid during 2011.

Prepare the necessary closing entries on December 31, 2011. (Omit the "$" sign in your response.)

If the firm's Retained Earnings account had a $96,000 balance on January 1, 2011, at what amount should Retained Earnings be reported in the firm's balance sheet dated December 31, 2011? (Omit the "$" sign in your response.)

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