What effect will the following closing entry have on the retained earnings account?
$\begin{array}{|l|r|r|}
\hline \text { Service Revenue } & 18,800 \
\hline \text { Interest Expense } & & 750 \
\hline \text { Operating Expenses } & & 15,500 \
\hline \text { Retained Earnings } & & 2,550 \
\hline
\end{array}$

Question

Quizplus · Accepted Answer

The closing entry transfers the net income (revenue minus expenses) to the retained earnings account, increasing it by $2,550.

What Effect Will the Following Closing Entry Have on the Retained