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Given the Following Adjusted Trial Balance After Closing Entries Have Been Posted, the Balance in Retained

Question 205

Multiple Choice

Given the following adjusted trial balance:   Debit     Credit   Cash....................................................................$781 Accounts receivable ............................................1,049 Inventory ...........................................................1,562 Prepaid rent ......................................................43 Equipment ......................................................150 Accumulated depreciation-equipment ...............26 Accounts payable ............................................41 Unearned service revenue ...................................61 Common stock ......................................................103 Retained earnings .................................................3,305 Service revenue ......................................................134 Interest revenue ......................................................28 Salaries and wages expense ......................................80 Travel expense ...........................................................33  Total .......................................................................... $3,698  $3,698  \begin{array}{cc}& \text{ \underline{\text{ \underline{\text{Debit }} }} } & \text{ \underline{\text{\underline{\text{ Credit}} }} } \\\text{ Cash} .................................................................... & \$781 & \\\text{ Accounts receivable } ............................................& 1,049 & \\\text{ Inventory } ........................................................... & 1,562 & \\\text{ Prepaid rent } ...................................................... & 43 & \\\text{ Equipment } ...................................................... & 150 & \\\text{ Accumulated depreciation-equipment }............... & & 26 \\\text{ Accounts payable }............................................ & & 41 \\\text{ Unearned service revenue } ................................... & & 61 \\\text{ Common stock } ......................................................& & 103 \\\text{ Retained earnings } ................................................. & & 3,305 \\\text{ Service revenue } ......................................................& & 134 \\\text{ Interest revenue } ...................................................... & & 28 \\\text{ Salaries and wages expense } ......................................& 80 & \\\text{ Travel expense } ........................................................... & \underline{\text{33 }} & -\\\text{ Total } .......................................................................... & \underline{\text{ \underline{\text{\$3,698 }} }} & \underline{\text{\underline{\text{\$3,698 }} }} \\ \end{array} After closing entries have been posted, the balance in retained earnings will be:


A) $3,256.
B) $3,170.
C) $3,440.
D) $3,354.

Correct Answer:

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