Fick Psychological Services, Inc

Fick 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. FICK PSYCHOLOGICAL SERVICES, INC. Income Statement Tor the year anded December 31, current year Revenue Counseling revenue $ 290,000 Expenses Advertising expense $ 2,300 Salaries expense 96,000 office supplies expense 2,100 Utilities expense 950 Malpractice Insurance expense 6,000 office rent expense 28,000 Continuing education expense 2,700 Depreciation expense: fixtures 3,500 Miscellaneous expense 6,000 Income taxes expense 36,000 183,550 Net Income $ 106,450 Fick's statement of retained earnings indicates that a $7.000 cash dividend was declared and paid during the current year. a. Prepare the necessary closing entries on December 31 of the current year. b. If Fick'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 firm's year-end balance sheet dated December 31? Complete this question by entering your answers in the tabs below. Required A Required B Prepare the necessary closing entries on December 31 of the current year. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.)
Required A Required B Prepare the necessary closing entries on December 31 of the current year. (If no entry is required journal entry required in the first account field.) View transaction list Journal entry worksheet