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What effect will the following closing entry have on the retained earnings account? Service Revenue 21,200 Interest Expense 1,350 Operating Expenses 16,700 Retained Earnings 3,150.
- What effect will the following closing entry have on the retained earnings account?
- Service Revenue 21,200 Interest Expense 1,350 Operating Expenses 16,700 Retained Earnings 3,150.
- A) Retained earnings will remain unchanged.
- B) Retained earnings will decrease by $3,150.
- c) Retained earnings will increase by $3,150.
- D) Retained earnings will be transferred to the income statement.
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Cornerstones of Financial and Managerial Accounting
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
2nd edition
978-0538473484, 538473487, 978-1111879044
