Question

The Retained earnings account has a credit balance of $30,600 before closing entries are made. Of total revenues for the period are $95,200, total expenses are $70,200, and dividends are $16,200, what is the ending balance in the Retained earnings account after all closing entries are made?

Answer 1

Answer:

Ending balance of retained earnings is $39,400

Explanation:

Given:

Retained earnings credit balance = $30,600

Revenue for the period = $95,200

Expenses = $70,200

Dividends = $16,200

Retained earnings ending balance after making closing entries:

Retained earnings ending balance = Retained earnings credit balance + Revenue - Expenses - Dividends

= 30,600 + 95,200 - 70,200 - 16,200

=$39,400

Therefore, retained earnings ending balance is $39,400.