High Step Shoes had annual revenues of $185,000, expenses of $103,700, and dividends of $18,000 during the current year. The retained earnings account before closing had a balance of $297,000. The entry to close the Income Summary account at the end of the year, after revenue and expense accounts have been closed, is:

Multiple Choice

• Debit Retained earnings $297,000; credit Income Summary $297,000

• Debit Retained earnings $63,300; credit Income Summary $63,300

• Debit Income Summary $63,300; credit Retained earnings $63,300

• Debit Income Summary $81,300, credit Retained earnings $81,300

• Debit Retained earnings $81,300; credit Income Summary $81,300