Chapter 3, Problem 3.25AE

(Learning Objective 5: Close the books) Prepare the closing entries from the following selected accounts from the records of North Pole Enterprises at December 31, 2018:

Cost of services sold...........	$14,800	Service revenue......................	$32,200
Accumulated depreciation...	41,100	Depreciation expense...........	4,100
Selling, general, and administrative expenses....	6,200	Other revenue .....................	1,000
		Dividends declared...............	500
Retained earnings, December 31, 2017…………	2,000	Income tax expense..............	900
		Income tax payable………...	600

How much net income did North Pole Enterprises earn during 2018? Prepare a T-account for Retained Earnings to show the December 31, 2018, balance of Retained Earnings.