Shown below is an adjusted trial balance for Novelty Toys, Incorporated, on December 31, Year 1:

Novelty Toys, Incorporated
Adjusted Trial Balance
December 31, Year 1
	Debit	Credit
Cash	$ 15,400
Accounts Receivable	12,700
Office Equipment	22,300
Accumulated Depreciation		$ 5,900
Accounts Payable		7,700
Capital Stock		22,400
Retained Earnings		-0-
Dividends	7,400
Fees Earned		45,000
Salaries Expense	15,800
Advertising Expense	3,200
Depreciation Expense	4,200
Totals	$ 81,000	$ 81,000

After closing the accounts, Retained Earnings at December 31 equals:

Multiple Choice

• $14,400.

• Zero.

• $21,800.

• $45,000.