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Closing entries with net income
After all revenue and expense accounts have been closed at the end of the fiscal year, Income Summary has a debit of $490,750 and a credit of $613,400. At the same date, Retained Earnings has a credit balance of $833,600, and Dividends has a balance of $55,000.
(a) Journalize the entries required to complete the closing of the accounts.
(b) Determine the amount of Retained Earnings at the end of the period.
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