Can some one explain how and why the retained earning (show calculation) is 6,520?

M4-12 Recording Closing Entries LO4-4

Romney's Marketing Company has the following adjusted trial balance at the end of the current year. No dividends were declared. However, 590 shares ($0.10 par value per share) issued at the end of the year for $3,000 are included below: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

	Debit				Credit
Cash	$	1,460
Accounts receivable		2,210
Interest receivable		280
Prepaid insurance		1,750
Notes receivable (long-term)		2,850
Equipment		16,900
Accumulated depreciation				$	3,190
Accounts payable					2,280
Accrued expenses payable					3,810
Income taxes payable					2,500
Unearned rent revenue					450
Common Stock (810 shares)					81
Additional paid-in capital					3,459
Retained earnings					3,160
Sales revenue					39,450
Interest revenue					160
Rent revenue					790
Wages expense		20,500
Depreciation expense		1,790
Utilities expense		220
Insurance expense		610
Rent expense		8,000
Income tax expense		2,760
Total	$	59,330		$	59,330

Prepare the closing entry at the end of the current year 0 Transaction General Journal Debit Credit Sales revenue Rent revenue Interest revenue 39,450 O 790 160 Utilities expense Depreciation expense Wages expense Rent expense Insurance expense Income tax expense Retained earnings 220 1,790 20,500 8,000 610 2,760 6,520