After closing entries are posted, the balance in the retained earnings account in the ledger will be equal to
A) the beginning retained earnings reported on the retained earnings statement.
B) the amount of the retained earnings reported on the balance sheet.
C) zero.
D) the net income for the period.

Question

Quizplus · Accepted Answer

The balance in the retained earnings account in the ledger after closing entries are posted should be equal to the amount of retained earnings reported on the balance sheet. This is because at the end of the accounting period, the net income or loss is closed to the retained earnings account, and the ending balance in retained earnings is ultimately reported on the balance sheet. The beginning balance reported on the retained earnings statement is typically not recorded in the ledger, but rather is a starting point used to calculate the ending balance. The balance in the retained earnings account in the ledger should not be zero or equal to the net income for the period as these amounts are closed to the retained earnings account and should not remain in the account after closing.

After Closing Entries Are Posted, the Balance in the Retained