The following account balances were taken from the adjusted trial balance of Kendall Company:

What is the Retained Earnings account balance that will be included on the post-closing trial balance?
A)$19,900
B)$7,400
C)$2,900
D)$24,400

Question

The following account balances were taken from the adjusted trial balance of Kendall Company:

What is the Retained Earnings account balance that will be included on the post-closing trial balance?
A)$19,900 
B)$7,400 
C)$2,900 
D)$24,400

Quizplus · Accepted Answer

Ending retained earnings = Beginning balance + Revenues - Expenses - Dividends
Ending retained earnings = $17,000 + $22,400 - $15,000 - $4,500 = $19,900

The Following Account Balances Were Taken from the Adjusted Trial