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1. When preparing the financial statements of Somersby Ltd, the accountant found the following information: Opening balance o

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Answer #1

Answer: The correct option is e i.e. None of the above is correct

Closing Retained Earnings = Opening Retained Earnings + Profit Earned – Dividends Declared
Closing Retained Earnings = $15,000 + $20,000 - $5,000
Closing Retained Earnings = $30,000

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