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Ghella [55]
3 years ago
11

The following information is available from the adjusted trial balance of the Harris Vacation Rental Agency. After closing entri

es are posted, what will be the balance in the Retained earnings account?
a) Total revenues $ 125,000
b) Total expenses 60,000
c) Retained earnings 80,000
d) Dividends 15,000
Business
2 answers:
Gemiola [76]3 years ago
5 0

Answer:

Retained Earnings Account will show a balance of $130000

Explanation:

Retained Earnings Balance is Calculated as Follows

                                                                        $

Opening Retained Earnings                       80000

<u><em>Add</em></u> Profit for the year (125000-60000)   65000

<u><em>Less</em></u> Dividends                                           (15000)

Retained Earnings at End of year              130000

konstantin123 [22]3 years ago
4 0

Answer:

$130,000

Explanation:

We must first determine the year's profit:

total revenues     $125,000

<u>- total expenses  ($60,000)</u>

net income           $65,000

you need to close net income:

Dr Net income 65,000

    Cr Retained earnings 65,000

you also need to close dividends account:

Dr Retained earnings 15,000

    Cr Dividends expense 15,000

the balance for retained earnings account:

<u>debit</u>                         <u>credit</u>

                                 80,000

                                 65,000

<u>15,000                                   </u>

                                130,000

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