Fick Psychological Services, Inc., closes its temporary accounts once each year on December 31. The company...

 

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Fick Psychological Services, Inc., closes its temporary accounts once each year on December 31. The company recently issued the following income statement as part of its annual report. Revenue: Counseling revenue Expenses: FICK PSYCHOLOGICAL SERVICES, INC. Income Statement For the year ended December 31, current year Advertising expense Salaries expense Office supplies expense Utilities expense Malpractice insurance expense Office rent expense Continuing education expense Depreciation expense: fixtures Miscellaneous expense Income taxes expense Net income $ 2,000 94,000 1,700 800 6,000 25,000 3,350 5,000 5,000 31,500 $ 230,000 174,350 $ 55,650 Fick's statement of retained earnings indicates that a $8,000 cash dividend was declared and paid during the current year. a. Prepare the necessary closing entries on December 31 of the current year. b. If Fick's 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 firm's year-end balance sheet dated December 31? Fick Psychological Services, Inc., closes its temporary accounts once each year on December 31. The company recently issued the following income statement as part of its annual report. Revenue: Counseling revenue Expenses: FICK PSYCHOLOGICAL SERVICES, INC. Income Statement For the year ended December 31, current year Advertising expense Salaries expense Office supplies expense Utilities expense Malpractice insurance expense Office rent expense Continuing education expense Depreciation expense: fixtures Miscellaneous expense Income taxes expense Net income $ 2,000 94,000 1,700 800 6,000 25,000 3,350 5,000 5,000 31,500 $ 230,000 174,350 $ 55,650 Fick's statement of retained earnings indicates that a $8,000 cash dividend was declared and paid during the current year. a. Prepare the necessary closing entries on December 31 of the current year. b. If Fick's 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 firm's year-end balance sheet dated December 31?

Answer rating: 100% (QA)

Requirement a Date Dec31 Counseling revenue Dec31 Dec31 Account tit... View the full answer