Multiple Choice$136,000.$207,300.$173,700.$64,700.$98,300.< Prev27 of 30 The following information is available for the Higgins Travel Agency. After closing entries are posted, what will be the balance in the Retained earnings account?Net Income$ 54,500Retained earnings136,00016,800DividendsMultiple Choice$136,000.$207.300$173700$64,700$98 30027 of 30Naxt >Type here to search99%

While posting closing entries: Incomes and Expenses are transferred to Income summary account.…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Multiple Choice
$136,000.
$207,300.
$173,700.
$64,700.
$98,300.
< Prev
27 of 30

The following information is available for the Higgins Travel Agency. After closing entries are posted, what will be the balance in the Retained earnings account?
Net Income
$ 54,500
Retained earnings
136,000
16,800
Dividends
Multiple Choice
$136,000.
$207.300
$173700
$64,700
$98 300
27 of 30
Naxt >
Type here to search
99%

Expert Solution

Concept

While posting closing entries:

Incomes and Expenses are transferred to Income summary account.
Thereafter, Net Income is transferred to Retained earnings account.
Dividends declared are transferred to retained earnings account.
(Net Income Less dividend) is added to beginning balance of retained earnings account to arrive at ending balance of Retained Earnings account.

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