Credit $ Debit 16,550,000 19,000,000 $ 2,750,000 700,000 110,000 13,750,000 2,800,000 800,000 Cash Accounts Receivable Allowance for Doubtful Accounts Inventory Prepaid Insurance Misc. Receivables Equipment Building Land Accumulated Depreciation: Equipment Accumulated Depreciation: Building Accounts Payable Income Tax Payable Notes Payable (Short-Term) Dividends Payable Commissions Payable Mortgage Payable (Long-Term) Common Stock Par $ 0.10 Additional Paid-in Capital Retained Earnings Dividends Sales (Revenue) Rent Revenue Cost of Goods Sold Selling Expense Administrative Expense Interest Expense Loss on Disposition of Equipment Income Tax Expense 5,825,000 1,100,000 8,300,000 5,430,000 4,000,000 1,100,000 1,000,000 2,770,000 280,000 10,000,000 5,800,000 1,100,000 35,000,000 110,000 14,000,000 6,200,000 3,075,000 200,000 450,000 4,730,000 83,465,000 $ $ 83,465,000 How does the accountant know that the Retained Earnings balance of $25 million is the balance as of the beginning of the year? Using the balances provided above, how could a quick addition/subtraction exercise on your calculator provide net income? How could the accountant calculate ending retained earnings without preparing the retained earnings statement? Explain the closing process utilizing the income summary account. Provide "T" accounts in your explanation along with the journal entries