Question

Hill

Insurance Agency started the year with a beginning Retained Earnings balance of

$24,500.

During the​ year,

Hill  

Insurance Agency earned

$33,000

of Service Revenue and incurred

$24,000

of various expenses. Dividends of

$16,000

from the business were paid to stockholders. After the closing entries are recorded and​ posted, what will be the balance of Retained​ Earnings?

Answer 1

A B 1 Particulars Amount 2 service revenue $ 33,000 3 Less: Expenses $ -24,000 4 Net income $ 9,000 5 6 Particulars Amount 7 Beginning balance of retained earnings $ 24,500 8 Add: Net income $ 9,000 9 Less: Dividends $ -16,000 10 Ending retained earnings $ 17,500

A B 1 Particulars Amount 2 service revenue 33000 3 Less: Expenses - 24000 4. Net income |=+B2+B3 5 6 Particulars Amount 7 Beginning balance of retained earnings 24500 8 Add: Net income =+B4 9 Less: Dividends - 16000 10 Ending retained earnings =+B7+B8+B9