Prepare journal entries necessary to close temporary account

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The following financial information was taken from the books of Zone Health Club, a small spa and fitness club:

Account Balances as of December 31, Year 2

Accounts receivable $29,500

Accounts payable 7,030

Salaries payable 11,800

Cash 43,500

Dividends 5,400

Operating expense 2,440

Prepaid rent 3,800

Rent expense 7,000

Retained earnings, Beginning 19,300

Salaries expense 31,100

Service revenue 84,700

Supplies 400

Supplies expense 2,870

Common stock 18,500

Unearned revenue 7,100

Land 14,300

Required

Problem a. Prepare the journal entries necessary to close the temporary accounts at December 31, Year 2, for Zone Health Club.

Problem b. What is the balance in the Retained Earnings account after the closing entries are posted?

Reference no: EM132988479

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