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23 January, 09:18

The following account balances were taken from the adjusted trial balance of Kendall Company: Revenues $ 22,400 Operating Expenses 15,000 Dividends 4,500 Retained Earnings 17,000 What is the Retained Earnings account balance that will be included on the post-closing trial balance?

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  1. 23 January, 09:33
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    Retained earnings-Closing = $19,900

    Explanation:

    Given that,

    Revenues = $22,400

    Operating Expenses = $15,000

    Dividends = $4,500

    Retained Earnings (opening) = $17,000

    Net Income = Revenues - Operating expenses

    = $ 22,400 - $15,000

    = $7,400

    Statement of Retained Earnings:

    Retained earnings-Closing:

    = Retained earnings - opening + Net Income - Dividends

    = $17,000 + $7,400 - $4,500

    = $19,900
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