Question

I don't know the two questions I got wrong or how to do it.

QUESTION5 Partially correct Mark 1.85 out of 2.00 Flag question Edit question Closing Entries The adjusted trial balance of the Rose Corporation, prepared as of December 31, contains the following accounts: Debit Credit Service fees earned Interest income Salaries expense Advertising expense Depreciation expense Income tax expense Common stock Retained earnings Cash dividends $92,600 2,300 $41,900 4,400 8,800 10,000 75,100 57,800 15,100 Prepare journal entries to close the accounts directly to Retained Earnings. After these entries are posted, what is the ending balance in the Retained Earnings account? General Journal Date Description Debit Credit Dec.31 Service Fees Earned Interest Income 2,300 Retained Earnings 092,600 x To close the revenue accounts. Dec.31 Retained Earnings # 65,100 Salaries Expense Advertising Expense Depreciation Expense Income Tax Expense V 4,400 8,800 10,000 0 To close expense accounts. Dec.31 Retained Earnings V 15,10 Cash Dividends 0 15,10 To close the Dividends account. Balance in Retained Earnings at December 31 $ 70,200 x

Answer 1

Retained earnings at December 31 = Retained earnings at January 1 + Net Income - Cash Dividend

Net Income = Revenue - Expense

= 94,900 - 65,100

Net Income = $29,800

Retained earnings at December 31 = $57,800 + $29,800 - $15,100

Retained earnings at December 31 = $72,500