The Gerde Clinic, Incorporated, closes its temporary accounts once each year on December $31.$ The company recently issued the following income statement as part of its annual report:

THE GERDE CLINIC, INCORPORATED

Income Statement

For the Year Ended December $31,$ current year

Revenue:

Counseling revenue $ $960,000$

Expenses:

Advertising expense $ $7,000$

Salaries expense $620,000$

Office supplies expense $4,000$

Utilities expense $6,000$

Malpractice insurance expense $12,000$

Office rent expense $64,000$

Continuing education expense $8,000$

Depreciation expense: fixtures $9,000$

Miscellaneous expense $3,000$

Income taxes expense $72,000805,000$

Net income $ $155,000$

Gerde's statement of retained earnings indicates that a $$25,000$ cash dividend was declared and paid during the current year.

Prepare the necessary closing entries on December $31$ of the current year.

If Gerde's Retained Earnings account had a $$400,000$ balance on at the beginning of the current year, at what amount should Retained Earnings be reported in the clinic's year$-$end balance sheet on December $31$ of the current year?