The treasury bank corporation had retained earning at the end of December 31, 2005 of $450,000. During 2006, the company had net income of $170,000 and declared dividends of $20,000. Retained earnings in the balance sheet as of December 31, 2006 will be:

& questions 42, 43, 44, 45, 46

41. The Treasury Bank Corporation had retained earnings at the end of December 31, 2005 of $450 During 2006, the company had net income of $170,000 and declared dividends of $20,000. Retained earnings on the balance sheet as of December 31, 2006 will be: A. $430,000 B. $600,000. C. $620,000. D. $640,000. 42. Income statement accounts are closed at what stage of the accounting process? A. At the time that adjustments are made. B. After adjustments are made and before the income statement is prepared C. After the income statement and the statement of retained earnings are prepared, but before the balance sheet is prepared. D. As the last journal entries at the end of each accounting year. 43. Closing entries: A. are prepared before financial statements are prepared. B. reduce the number of permanent accounts. C. cause the revenue and expense accounts to have zero balances D. summarize the activity in every account. 44. Purfect Pets has made all the year-end adjustments. Its expense accounts total $130,000, and its revenue accounts total $190,000. The closing journal entry to close the income statement accounts for the year will A. debit its various expense accounts for a total of $130,000, debit retained earnings for $60,000, and credit its various revenue accounts for a total of $190,000. B. debit its various revenue accounts for a total of $190,000, credit retained earnings for $60,000, and credit its various expense accounts for a total of $130,000 C. debit its various expense accounts for a total of $130,000, credit its various revenue accounts for a total of $190,000, and credit retained earnings for $60,000. D. debit its various credit its various expense accounts for a total of $130,000. revenue accounts for a total of $190,000, debit retained earnings for $60,000, and 45. The sales revenue account has a credit balance of $367,200 at year end. After closing entries are made, the account will A. have a debit balance of $367,200. B. have a zero balance. C. still have a credit balance of $367,200. D. be removed entirely from the general ledger. 46. At the beginning of the year, net income should be equal to A. the ending net income from the previous year B. the ending net income from the previous year before income tax expense. C. the ending retained earnings from the previous year