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:

	Income Statement for the year ended December 31, 2015
Revenue:
counseling revenue		$300,000
Expenses	$2700
Salaries expense	95000
office supplies expense	2800
utilites expense	900
Malpractice insurance expense	5000
office rent expense	23000
continuing education expense	4000
Depreciation expense: fixtures	4000
miscellaneous expense	5000
income taxes expense	25000	167400
net income		132600

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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Transaction 1. Record the entry to close counseling revenue earned to income summary Transaction 2. Record the entry to close all expense accounts to income summary Transaction 3. Record the entry to transfer net income earned in 2015 to retained earnings account Transaction 4. Record the entry to close dividends in 2015 to retained earnings account. b. If the firm's retained earnings account had a $94000 balance on January 1, 2015, at what amount should Retained earnings be reprted in the firm's balance sheet dated December 31, 2015 Retained earnings, December 31, 2015 =