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The Gerde Clinic, Incorporated, closes its temporary accounts once each year on December 31. The...

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Accounting

The Gerde Clinic, Incorporated, closes its temporary accounts once each year on December 31. The company recently issued the following income statement as part of its annual report:

THE GERDE CLINIC, INCORPORATED
Income Statement
For the year ended December 31, current year
Revenue:
Counseling revenue $ 360,000
Expenses:
Advertising expense $ 2,800
Salaries expense 92,000
Office supplies expense 1,100
Utilities expense 850
Malpractice insurance expense 5,000
Office rent expense 28,000
Continuing education expense 3,950
Depreciation expense: fixtures 5,000
Miscellaneous expense 6,000
Income taxes expense 30,500 175,200
Net income $ 184,800

Gerdes statement of retained earnings indicates that a $7,000 cash dividend was declared and paid during the current year.

Prepare the necessary closing entries on December 31 of the current year.

If Gerdes Retained earnings account had a $97,000 balance on at the beginning of the current year, at what amount should Retained Earnings be reported in the clinic's year-end balance sheet on December 31 of the current year?

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