Question $19$

A corporation reported $$15,000$ of net profit in $201.$ The management paid $$5,000$ of dividends to its stockholders. The company's Retained Earnings at the end of $200$ was $$180,000.$ Determine the amount added at the end of $201$ to its Retained Earnings.

$190,000$

$15,000$

$195,000$

$10,000$

Question $20$

What do we do to the Income Statement T$-$accounts after one accounting period is completed with all financial statements prepared?

Conduct the closing process to reset all balances of individual T$-$accounts back to zero $(0)$; and record new accounting term's transaction records.

Continue with the existing T$-$accounts by adding new transaction records.

Conduct the closing process; and carry the current balance into the new accounting term's beginning balance.

Store the old T$-$accounts in a safe place; and create a new set of T$-$accounts for the new accounting period.