What effect will the following entry have on Retained Earnings?
A)Retained Earnings will increase by $2,550.
B)Retained Earnings will decrease by $2,550.
C)Retained Earnings will remain unchanged.
D)Retained Earnings will be transferred to the income statement.

Question

What effect will the following entry have on Retained Earnings? 
A)Retained Earnings will increase by $2,550. 
B)Retained Earnings will decrease by $2,550. 
C)Retained Earnings will remain unchanged. 
D)Retained Earnings will be transferred to the income statement.

Quizplus · Accepted Answer

A credit to retained earnings of $2,550 to close service revenue, interest expense, and operating expenses will increase retained earnings by $2,550.

What Effect Will the Following Entry Have on Retained Earnings