Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

Exercise 58

Hammerstone Consulting provides risk management services to individuals and to corporate clients.he company closes its temporary accounts once each year on December 31.he company recently issued the following income statement as part of its annual report:

The firm's statement of retained earnings indicates that a $37,500 cash dividend was declared and paid in 2015.
a.repare the necessary closing entries on December 31, 2015.
b.f the firm's Retained Earnings account had a $450,000 balance on January 1, 2015, at what amount should Retained Earnings be reported in the firm's balance sheet dated December 31, 2015