Given The Following Adjusted Trial Balance: After Closing Entries Have Been Posted The Balance In Retained Earnings Will Be:
The correct option of this multiple choice question (mcq) is "D" as proved below: Firstly, here we need to calculate Net Income, which is transferred to Retained Earnings Account (REA), and then the balance of REA after the posting of closing journal entries. We are given the following relevant information from the adjusted trial balance of a company / corporation: Service Revenue = $184 Commission Revenue = $28 Salaries And Wages Expense = $80 Travel Expense = $33 Opening Retained Earnings Or Retained Earnings Before Adjustments or before posting closing entries = $3,305 In closing entries, all the temporary accounts (revenue and expense accounts) are, finally, closed to Income Summary Account, which affects the REA also. All other accounts, which are shown in this adjusted trial balances are assets (cash, accounts receivable, inventory, prepaid rent and equipment), liabilities (accounts payable and unearned service revenue), equity account (retained earnings and commo...