The following is the adjusted trial balance for Baker Services. \(\begin{array}{|c|c|c|}
\hline \text { Accounts } & \text { Debit } & \text { Credit } \
\hline \text { Cash } & \$ 34,000 & \
\hline \text { Accounts Receivable } & 28,000 & \
\hline \text { Prepaid Insurance } & 7,500 & \
\hline \text { Office Supplies } & 3,000 & \
\hline \text { Land } & 48,000 & \
\hline \text { Building } & 150,000 & \
\hline \text { Accumulated Depreciation-Building } & & \$ 15,500 \
\hline \text { Equipment } & 71,000 & \
\hline \text { Accumulated Depreciation-Equipment } & & 7,000 \
\hline \text { Accounts Payable } & & 23,000 \
\hline \text { Salaries Payable } & & 4,000 \
\hline \text { Unearned Revenue } & & 29,000 \
\hline \text { Mortgage Payable } & & 100,000 \
\hline \text { Common Stock } & & 10,000 \
\hline \text { Retained Earnings } & & 11,500 \
\hline \text { Dividends } & 22,000 & \
\hline \text { Service Revenue } & & 280,000 \
\hline \text { Salaries Expense } & 62,000 & \
\hline \begin{array}{l}
\text { Depreciation Expense-Building and } \
\text { Equipment }
\end{array} & 5,900 & \
\hline \text { Supplies Expense } & 14,000 & \
\hline \text { Insurance Expense } & 14,600 & \
\hline \text { Utilities Expense } & 20,000 & \
\hline \text { Total } & \$ 480,000 & \$ 480,000 \
\hline
\end{array}\) After the closing entries are posted, what is the balance in Retained Earnings?
A) $22,000
B) $185,000
C) $21,500
D) $153,000

Question

Quizplus · Accepted Answer

To find the balance in Retained Earnings after the closing entries are posted, we need to look at the adjusted trial balance and find the balance in the Retained Earnings account. In this case, the Retained Earnings account has a balance of $153,000, which means that this is the amount of net income that has been retained by the company after dividends have been paid and any prior losses have been accounted for. Therefore, the correct answer is D.

The Following Is the Adjusted Trial Balance for Baker Services