Exercise $13-21$A $($Algo$)$ Preparing closing entries LO $13-4$

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 $ $26,400$

Accounts payable $7,100$

Salaries payable $10,500$

Cash $42,300$

Dividends $5,400$

Operating expense $2,090$

Prepaid rent $3,500$

Rent expense $7,600$

Retained Earnings $1/1/$Year $218,500$

Salaries expense $32,000$

Service revenue $76,630$

Supplies $380$

Supplies expense $2,960$

Common stock $17,500$

Unearned revenue $7,000$

Land $14,600$

Required

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

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