Regina's Dry Cleaning Had a Great Year

Short Answer

Regina's Dry Cleaning had a great year. It reported net income of $186,600 in 2018. Now Regina Arter needs to close the books and get ready to open on January 1.
Required:
Using the Regina's 2018 Income Statement, prepare the entry needed to close the books as of December 31, 2018.
$\begin{array}{c}\text { Regina's Dry Cleaning}\\\text { Income Statement }\\\text { For the year ended December 31, 2018}\\\begin{array}{lr}\text { Dry cleaning revenue } && \$ 357,000 \\\text { Tailoring revenue } && 26,000 \\\text { Rug cleaning revenue } && 4,700 \\\quad \text { Total operating revenue } && 387,700\\\text { Expenses: }\\\text { Salaries and taxes } & \$ 159,000 \\\text { Payroll taxes } & 15,200 \\\text { Service location rent } & 14,000 \\\text { Chemicals and cleaning supplies } & 6,400 \\\text { Miscellaneous supplies } & 3,900 \\\text { Depreciation expense } & 2,750 &201,250\\\text {Operating Income}&&186,450\\\text {Interest revenue}&&150\\\text {Net Income}&&\$186,600\end{array}\end{array}$