Retained earnings
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please help find

Transcribed Image Text:Income Statement
Balance Sheet
Adjusted Trial Balance
Debit
Credit
Debit
Credit
Debit
Credit
Account Title
16,000
16,000
Cash
6,000
6,000
Accounts Receivable
2,000
2,000
Supplies
Equipment
19,000
19,000
Accumulated Depr.
6,000
6,000
Accounts Payable
10,000
10,000
Wages Payable
2,000
2,000
Common Stock
5,000
5,000
Retained Earnings
3,360
3,360
Dividends
1,000
1,000
Fees Earned
49,488
49,488
Wages Expense
19,553
19,553
Rent Expense
6,849
6,849
Depreciation Expense
5,446
5,446
Totals
75,848
75,848
31,848
49,488
44,000
26,360
Net Income (Loss)
17,640
17,640
49,488
49,488
44,000
44,000
The effect of closing revenues and expenses to Retained Earnings will be to:
Oa. increase Retained Earnings by $17,640
Ob. decrease Retained Earnings by $17,640
Oc. increase Retained Earnings by $31,848
d. decrease Retained Earnings by $44,000
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON

Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education