Refer to the following adjusted trial balance Accounts Debi

Refer to the following adjusted trial balance

Accounts Debit Credit
Cash $15,500
Accounts Receivable 8,400
Office Supplies 900
Equipment 9,400
Accumulated Depreciation— Equipment $3,000
Accounts Payable 1,800
Salaries Payable 700
Unearned Revenue 550
Common Stock 3,900
Dividends 1,000
Service Revenue 52,050
Salaries Expense 23,000
Supplies Expense 2,200
Depreciation Expense— Equipment 1,600
Total $62,000 $62,000

What will the final ending balance in the Retained Earnings account be after posting the closing entries?
A) $24,250
B) $25,250
C) $29,150
D) $26,250

ANSWER

A .Service Revenue $52,050
Salaries Expense – 23,000
Supplies Expense – 2,200
Depreciation Expense—Equipment – 1,600
Net Income $25,250

Beginning Retained Earnings $0
Add: Net Income 25,250
Dividends (1,000 )
Ending Retained Earnings $24,250