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:

GERDES PSYCHOLOGICAL SERVICES, INC. Income Statement For the Year Ended December 31, 2015
Revenue:
Counseling revenue			$	225,000
Expenses:
Advertising expense	$	1,800
Salaries expense		94,000
Office supplies expense		1,200
Utilities expense		850
Malpractice insurance expense		6,000
Office rent expense		24,000
Continuing education expense		2,650
Depreciation expense: fixtures		4,500
Miscellaneous expense		6,000
Income taxes expense		29,400		170,400
Net income			$	54,600

  

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.