The following information is available for the Travis Travel Agency.After the closing entries have been journalized and posted,what will be the balance in the Retained Earnings account?
$$\begin{array} { | l | r | }
\hline \text { Total revenues } & \$ 125,000 \
\hline \text { Total expenses } & 60,000 \
\hline \text { Retained earnings } & 8 0 , 0 0 0 \
\hline \text { Dividends } & 15,000 \
\hline
\end{array}$$
A)$65,000
B)$80,000
C)$130,000
D)$145,000
E)$280,000

Question

The following information is available for the Travis Travel Agency.After the closing entries have been journalized and posted,what will be the balance in the Retained Earnings account?
$$\begin{array} { | l | r | } 
\hline \text { Total revenues } & \$ 125,000 \
\hline \text { Total expenses } & 60,000 \
\hline \text { Retained earnings } &  8 0 , 0 0 0  \
\hline \text { Dividends } & 15,000 \
\hline
\end{array}$$
A)$65,000
B)$80,000
C)$130,000
D)$145,000
E)$280,000

Quizplus · Accepted Answer

The balance in the Retained Earnings account after closing entries is calculated as: Beginning Retained Earnings ($80,000) + Net Income ($125,000 - $60,000 = $65,000) - Dividends ($15,000) = $130,000.

The Following Information Is Available for the Travis Travel Agency