The following information is available for the Higgins Travel Agency. After closing entries are posted, what will be the balance in the Retained earnings account? Net Income $ 54,500 Retained earnings 136,000 Dividends 16,800 Multiple Choice $136,000. $207.300 $173700
The following information is available for the Higgins Travel Agency. After closing entries are posted, what will be the balance in the Retained earnings account? Net Income $ 54,500 Retained earnings 136,000 Dividends 16,800 Multiple Choice $136,000. $207.300 $173700
Chapter5: Completing The Accounting Cycle
Section: Chapter Questions
Problem 9Q: After the first two closing entries are made, Income Summary has a credit balance of $125,500. What...
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While posting closing entries:
- Incomes and Expenses are transferred to Income summary account.
- Thereafter, Net Income is transferred to Retained earnings account.
- Dividends declared are transferred to retained earnings account.
- (Net Income Less dividend) is added to beginning balance of retained earnings account to arrive at ending balance of Retained Earnings account.
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