Question

Spring 2020 Section 902 (1) Homework: Chapter 4 part B homework Score: 0 of 1 pt < 7 of 9 (6 complete) HW Score: 62.22%, 5.6 of E4-23 (similar to) Question Help Price Insurance Agency started the year with a beginning Retained Earings balance of $26,500. During the year, Price Insurance Agency earned $37,000 of Service Revenue and incurred $23,000 of various expenses. Dividends $15,000 from the business were paid to stockholders. After the closing entries are recorded and posted, what will be the balance of Retained Earnings? Post the beginning balance and closing entry amounts to the Retained Earnings account. Use a "Bal" posting reference to show the beginning and ending balance of the Retained Earnings account. Use a "Clos" posting reference to show the amounts that are posted while closing the books. The revenue and expense amounts should combined into one closing entry for net income (like you are closing the Income Summary account) Retained Earnings Choose from any list or enter any number in the input fields and then click Check Answer All parts showing Clear All Check Answer

Answer 1

Retained Earnings
Dividend	$ 15,000.00	Beg. Bal.	$ 26,500.00
End. Bal.	$25,500.00	Net Income	$ 14,000.00
	$ 40,500.00		$ 40,500.00

Workings:

	Computation of Net Income
	Service Revenue		$ 37,000.00
Less:	Expenses		$ 23,000.00
	Net Income		$ 14,000.00