The adjusted trial balance for Montague Contracting as of December 31, 2018, follows.

MONTAGUE CONTRACTING Adjusted Trial Balance December 31, 2018
No.	Account Title	Debit				Credit
101	Cash	$	6,500
104	Short-term investments		23,500
126	Supplies		9,400
128	Prepaid insurance		8,100
167	Equipment		50,000
168	Accumulated depreciationEquipment					$	25,000
173	Building		168,000
174	Accumulated depreciationBuilding						56,000
183	Land		72,480
201	Accounts payable						17,000
203	Interest payable						3,000
208	Rent payable						3,900
210	Wages payable						2,900
213	Property taxes payable						1,200
233	Unearned professional fees						7,500
251	Long-term notes payable						70,500
307	Common stock						6,500
318	Retained earnings						125,300
319	Dividends		11,700
401	Professional fees earned						104,000
406	Rent earned						17,000
407	Dividends earned						2,600
409	Interest earned						3,000
606	Depreciation expenseBuilding		12,320
612	Depreciation expenseEquipment		7,500
623	Wages expense		27,500
633	Interest expense		4,500
637	Insurance expense		7,100
640	Rent expense		11,100
652	Supplies expense		6,500
682	Postage expense		2,600
683	Property taxes expense		4,200
684	Repairs expense		6,600
688	Telephone expense		2,600
690	Utilities expense		3,200
	Totals	$	445,400			$	445,400

The December 31, 2017, credit balance of the Retained Earnings account was $125,300. Montague Contracting is required to make a $7,500 payment on its long-term notes payable during 2019. Required: 1. Prepare the necessary closing entries at December 31, 2018.