The following selected accounts and balances appear on the adjusted trial balance for
Sparkle, Inc., on July 31, 2012:
Service Revenue ........................................ $ 1,900
Rent Expense............................................. 925
Salaries Expense........................................ 450
Dividends................................................... 200
Common Stock.......................................... 21,000
Retained Earnings...................................... 11,000

1. What is the net income or net loss?
2. What is the change in Retained Earnings?
3. Journalize the closing entries required.