Gerdes Psychological Services, Inc.,
Gerdes Psychological Services, Inc., closes its temporary accounts once each year on December 31. The company recently issued the following income statement as part of its annual report:
GERDES PSYCHOLOGICAL SERVICES, INC.
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2015
Revenue:
Counseling revenue $225,000
Expenses:
Advertising expense $1,800
Salaries expense 94,000
Office supplies expense 1,200
Utilities expense 850
Malpractice insurance expense 6.000
Office rent expense 24,000
Continuing education expense 2,650
Depreciation expense: fixtures 4,500
Miscellaneous expense 6,000
Income taxes expense 29,400 170,400
__________________
Net income $54,600
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The firm's statement of retained earnings indicates that a $6,000 cash dividend was declared and paid during 2015.
a. Prepare the necessary closing entries on December 31, 2015.
b. If the firm's Retained Earnings account had a $ 92,000 balance on January 1, 2015, at what amount should Retained Earnings be reported in the firm's balance sheet dated December 31, 2015?
Answers
Status NEW
Posted 20 Jun 2017 04:06 AM
My Price 9.00
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