The following financial information was taken from the books of Zone Health Club, a small spa and fitness club.

Required a. Prepare the journal entries necessary to close the temporary accounts at December 31, Year 2, for Zone Health Club. b. What is the balance in the Retained Earnings account after the closing entries are posted?

\begin{tabular}{lr} \multicolumn{1}{c}{ Account Balances as of December 31, Year 2 } \\ Accounts Receivable & $29,100 \\ Accounts Payable & 7,220 \\ Salaries Payable & 11,800 \\ Cash & 44,000 \\ Dividends & 5,000 \\ Operating Expenses & 2,820 \\ Prepaid Rent & 3,700 \\ Rent Expense & 7,700 \\ Retained Earnings, Beginning & 19,900 \\ Salaries Expense & 32,700 \\ Service Revenue & 77,340 \\ Supplies & 270 \\ Supplies Expense & 2,310 \\ Common Stock & 18,400 \\ Unearned Revenue & 6,540 \\ Land & 13,600 \end{tabular}