The trial balance of Barger Company at the end of the accounting period, immediately prior to recording closing entries, showed the following: What will the balance of the retained earnings accountbe after the closing entries are recorded?
A)$17,600
B)$20,100
C)$32,600
D)$35,100

Question

The trial balance of Barger Company at the end of the accounting period, immediately prior to recording closing entries, showed the following:  What will the balance of the retained earnings accountbe after the closing entries are recorded?
A)$17,600 
B)$20,100 
C)$32,600 
D)$35,100

Quizplus · Accepted Answer

To find out the balance of the retained earnings account after closing entries, we need to add the net income to the beginning balance of retained earnings and subtract the dividends declared.

Net income = $15,000
Beginning balance of retained earnings = $19,600
Dividends declared = $2,000

Therefore, the balance of retained earnings after closing entries will be:
$19,600 (beginning balance) + $15,000 (net income) - $2,000 (dividends declared) = $32,600.

Therefore, the correct answer is C.

The Trial Balance of Barger Company at the End of the Accounting