Use the information provided in E3-5B to prepare journal entries to close the accounts using the Income Summary account. After these entries are posted, what is the balance in the Retained Earnings account?

Exercise E3-5B

The adjusted trial balance prepared December 31, for Cheryl Lester \& Company, shipping agent, contains the following accounts:

Prepare journal entries to close the accounts directly to Retained Earnings. After these entries are posted, what is the ending balance in the Retained Earnings account?

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Wages expense. Commissions earned Debit $36,000 Credit $94,900 Insurance expense. 3,000 Utilities expense. 9,500 Depreciation expense. 9,800 Dividends. 12,000 Common stock. 90,000 Retained earnings 22,100