The following information is available for Zephyr Company before closing the accounts.After all of the closing entries are made,what will be the balance in the Retained earnings account?
$$\begin{array} { l r }
\text { Net income } & \$ 115,000 \
\text { Retained earnings } & 110,000 \
\text { Dividends } & 39,000
\end{array}$$
A) $115,000.
B) $225,000.
C) $264,000.
D) $186,000.
E) $956,000.

Question

The following information is available for Zephyr Company before closing the accounts.After all of the closing entries are made,what will be the balance in the Retained earnings account?
$$\begin{array} { l r } 
\text { Net income } & \$ 115,000 \
\text { Retained earnings } & 110,000 \
\text { Dividends } & 39,000
\end{array}$$
A) $115,000.
B) $225,000.
C) $264,000.
D) $186,000.
E) $956,000.

Quizplus · Accepted Answer

The balance in the Retained Earnings account after closing entries will be calculated as follows: Starting Retained Earnings + Net Income - Dividends = $110,000 + $115,000 - $39,000 = $186,000.