Recording Closing Entries Lakeside Inc. reports normal account balances in the following accounts on December 31. Prepare closing entries as of December 31. Assume that the company uses the Income Summary account as a temporary clearing account for revenues, expenses, gains, and losses. Dividends are closed directly to retained earnings. Account Name Dec 31 Service revenue $100,000 Operating expenses 60,000 Interest revenue 2,500 Interest expense 3,000 Income tax expense 11,850 Dividends 5,000 Retained earnings 188,000 Common stock 100,000