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 account be after the closing entries are recorded?
A)$17,600
B)$4,600
C)$18,600
D)$3,600

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 account be after the closing entries are recorded?
A)$17,600 
B)$4,600 
C)$18,600 
D)$3,600

Quizplus · Accepted Answer

Closing entries move all current year data from the temporary accounts (revenues,expenses,and dividends)into the retained earnings account.
Ending retained earnings = Beginning retained earnings + Revenues- Expenses - Dividends.
Ending retained earnings = $14,000 + $43,000 - $38,400 - $1,000 = $17,600.

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