Irvine Company began the current period with a $35,000 credit balance in the Retained Earnings account. At
Question:
Irvine Company began the current period with a $35,000 credit balance in the Retained Earnings account. At the end of the period, the company’s adjusted account balances include the following temporary accounts with normal balances.
Service fees earned . . . . . . . . . . $42,000
Salaries expense . . . . . . . . . . . . . 31,000
Depreciation expense . . . . . . . . . 11,000
Interest revenue . . . . . . . . . . . . . $8,000
Dividends . . . . . . . . . . . . . . . . . . 9,200
Utilities expense . . . . . . . . . . . . . 5,000
After closing the revenue and expense accounts, what will be the balance of the Income Summary account? After all closing entries are journalized and posted, what will be the balance of the Retained Earnings account?
Step by Step Answer:
Income Summary balance after closing revenues and expenses Revenues 42000 8000 50000 Cr ...View the full answer
