All revenue and expense accounts have been closed at the end of the calendar year for Patton Company. The Income Summary account has total debits of $530,000 and total credits of $600,000. As of the same date, Retained Earnings has a balance of $115,000, and the Dividends account has a balance of $48,000.
Instructions
a) Journalize the entries required to complete the closing of the accounts.
b) Prepare a retained earnings statement for the year ended December 31, 2015.