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All income and expense accounts were closed at the end of the calendar year for...

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Accounting

All income and expense accounts were closed at the end of the calendar year for the 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) Take to the journal the necessary entries to complete the closing of the accounts.

b) Prepare a statement of retained earnings for the year ended December 31, 2015.

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