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

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
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...
icon
Related questions
Question
Multiple Choice
$136,000.
$207,300.
$173,700.
$64,700.
$98,300.
< Prev
27 of 30
Transcribed Image Text:Multiple Choice $136,000. $207,300. $173,700. $64,700. $98,300. < Prev 27 of 30
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
16,800
Dividends
Multiple Choice
$136,000.
$207.300
$173700
$64,700
$98 300
27 of 30
Naxt >
Type here to search
99%
Transcribed Image Text: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 16,800 Dividends Multiple Choice $136,000. $207.300 $173700 $64,700 $98 300 27 of 30 Naxt > Type here to search 99%
Expert Solution
Concept

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.
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Ratio Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781305084087
Author:
Cathy J. Scott
Publisher:
Cengage Learning
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub