The following financial information was taken from the books of Randy's gym, a small fitness club
|
Accounts Receivable
|
$12,450 |
| Accounts Payable |
6,200 |
| Salaries Payable |
3,150 |
| Cash |
36,750 |
| Dividends |
2,000 |
| Operating expenses |
35,300 |
| Prepaid Rent |
1,200 |
| Rent Expense |
8,400 |
| Retained Earnings 1/1/2015 |
41,250 |
| Salaries Expense |
14,500 |
| Service Revenue |
65,400 |
| Supplies |
650 |
| Supplies Expense |
3,150 |
| Common Stock |
7,000 |
| Unearned Revenue |
6,400 |
| Land |
15,000 |
a. Prepare the journal entries necessary to close the temporary accounts at December 31, 2015 for Randy's gym and spa
b. What is the balance in the Retained Earnings account after the closing entries are posted?