ABC Company had the following transactions during its first year of operations: Issued Stock to Investors...

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ABC Company had the following transactions during its first year of operations: Issued Stock to Investors $200 Borrowed Money

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Answer 1

Answer #1

Answer: $0

At closing, the journal entries will be recorded to close the temporary accounts namely the earned revenue, incurred expenses, and dividends paid, to the retained earnings account. Until such time, the retained earnings for Year 1 will show a nil balance. Hence, $0 is the correct answer.

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Answer 2

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