GERDES PSYCHOLOGICAL SERVICES, INC. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2011 Revenue: $225,000 Expenses: Advertising expense . . . . 1,800 1,200 850 2,650 4,500 6,000 Depreciation expense: fixtures . Income taxes expense 29,400 170,400 54,600 The firm's statement of retained earnings indicates that a $6.000 cash dividend was declared and paid during 2011. a. Prepare the necessary closing entries on December 31,2011. b. If the firm's Retained Earnings account had a $92,000 balance on January 1,2011, at what amount should Retained Earmings be reported in the firm's balance sheet dated December il 0