The retained earnings account of a corporation at the beginning of the year had a credit balance of $65,000. The only other entry in the account during the year was a debit of $150,000 transferred from the income summary account at the end of the year,

(a) What is the term applied to the $150,000 debit?

(b) What is the term applied to the debit balance of retained earnings at the end of the year, after all closing entries have been posted?

 LO5