Question

Simon Inc. has the following account balances before the closing,

Retained earnings: 2,520 (Credit) D
ividends: 960 (Debit)
Service revenues: 21,920 (Credit)
Wages expense: 3,200 (Debit)
Supplies expense: 1,120 (Debit)
Depreciation expense: 960 (Debit)
Refer to the above data. After closing the temporary accounts, Retained Earnings at December 31 equals:_________

Answer 1

$18,200

Step-by-step explanation:

Retained earnings. $2,520

Add: Service revenue $21,920

$24,440

Less : Expenses

Wages expenses (3,200)

Supplies expense (1,120)

Depreciation exp. (960)

Total expenses. (5,280)

Net income 19,160

Less dividends. (960)

Retained earnings 18,200

Retained earnings at 31 December is $18,200