Question

Kimmel, Financial Accounting, 9e dy & Practice Assignment Gradabook ORION Downloadable Textbook n Assignment URCES Question 8 Given the following adjusted trial balance: Credit Debit $964 Cash 1217 1812 50 170 $30 Study 48 71 Accounts receivable Inventory Prepaid rent Equipment Accumulated depreciation-equipment Accounts payable Unearned service revenue Common stock Retained earnings Service revenue Interest revenue Salaries and wages expense Travel expense Total 112 3835 213 32 90 38 $4341 $4341 After closing entries have been posted, the balance in retained earnings will be:

Answer 1

Dr $213 Dr $32 Service revenue Alc Interest revenue Alc To Income summary A/C (Being revenue accounts closed to Income summary account) $245 Dr $128 Income summary Alc To Salaries and wages expenses Alc To Travel expenses Alc (Being expenses accounts closed to Income summary Account) $90 $38 $117 Income summary Alc Dr To Retained earnings Alc ($245 - $128) (Being Income summary account closed to retained earnings A/C) $117 Total ending balance in Retained earnings account = Beginning balance + Transfer from Income summary Alc = $3.835 + $117 = $3,952 Ans: $3,952