The income statement for the Bonita Pines Golf Club Inc. for the month ended July 31 shows Service Revenue $16,000. Salaries and Wages Expense $8,400, Maintenance and Repairs Expense $2500 and Income Tax Expense $1,000. The statement of retained earnings shows an opening balance for Retained Earnings of $20,000 and Dividends $1,300.
(a) Prepare closing journal entries.
(b) What is the ending balance in Retained Earnings?