Question
The following selected account balances were listed in the unadjusted trial balance as of 12/31/17: Prepaid Rent = $5,900; Deferred Revenue = $2,100; Retained Earnings
The following selected account balances were listed in the unadjusted trial balance as of 12/31/17: Prepaid Rent = $5,900; Deferred Revenue = $2,100; Retained Earnings = $6,588; Dividends = $300; Sales Revenue = $43,690; COGS = $6,190; Depreciation Expense = $0; Rent Expense = $0; Interest Expense = $0; Supplies Expense = $0; Wages expense = $14,500. Assume all accounts have their normal account balance. Suppose after all adjusting entries are made on 12/31/17, The Androids Dungeon and Baseball Card Shop reports net income of $7,350 on its income statement for 2017. What will be the balance of Retained Earnings that appears on the post-closing trial balance?
a. $23,081 b. $22,781 c. $13,938 d. $13,638 e. $6,588
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