The following information is available for the Noir Detective Agency.After closing entries are posted,what will be the balance in the Retained earnings account?
$$\begin{array} { l r }
\text { Net Loss } &\$ 17,600 \
\text { Retained earnings } & 289,000 \
\text { Dividends } & 32,000
\end{array}$$
A) $239,400.
B) $274,600.
C) $303,400.
D) $289,000.
E) $257,000.

Question

The following information is available for the Noir Detective Agency.After closing entries are posted,what will be the balance in the Retained earnings account?
$$\begin{array} { l r } 
\text { Net Loss } &\$ 17,600 \
\text { Retained earnings } & 289,000 \
\text { Dividends } & 32,000
\end{array}$$
A) $239,400.
B) $274,600.
C) $303,400.
D) $289,000.
E) $257,000.

Quizplus · Accepted Answer

The correct answer is A. The balance in the Retained earnings account after closing entries are posted is $239,400. This is calculated by subtracting the net loss of $17,600 and the dividends of $32,000 from the beginning retained earnings balance of $289,000.