Reference no: EM133971832

Problem

Closing Entries of a Profitable Company- 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 $ 490,000 Expenses: Advertising expense $ 2,600 Salaries expense 97,000 Office supplies expense 1,700 Utilities expense 950 Malpractice insurance expense 6,000 Office rent expense 29,000 Continuing education expense 2,150 Depreciation expense: fixtures 3,500 Miscellaneous expense 7,000 Income taxes expense 36,500 186,400 Net income $ 303,600 Gerde's statement of retained earnings indicates that a $5,000 cash dividend was declared and paid during the current year. Prepare the necessary closing entries on December 31 of the current year. Get the instant assignment help. If Gerde's Retained earnings account had a $99,000 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?