The following is the adjusted trial balance for Becker Photo

The following is the adjusted trial balance for Becker Photography

Accounts Debit Credit
Cash $88,600
Accounts Receivable 29,000
Prepaid Insurance 3,500
Office Supplies 3,200
Building 130,000
Accumulated Depreciation—Building $17,500
Equipment 77,000
Accumulated Depreciation—Equipment 9,000
Land 47,000
Accounts Payable 25,000
Salaries Payable 5,000
Unearned Revenue 27,000
Mortgage Payable 103,000
Common Stock 16,000
Retained Earnings 11,500
Dividends 25,000
Service Revenue 301,000
Salaries Expense 62,000
Depreciation Expense—Building and Equipment 6,200
Supplies Expense 11,000
Insurance Expense 14,500
Utilities Expense 18,000
Total $515,000 $515,000

After the closing entries, what will the final balance in Retained Earnings be?
A) $25,000
B) $216,800
C) $27,500
D) $175,800

ANSWER

D .Service Revenue $301,000
Salaries Expense – 62,000
Depreciation Expense – 6,200
Supplies Expense – 11,000
Insurance Expense – 14,500
Utilities Expense – 18,000
Net Income $189,300

Beginning Retained Earnings $11,500
Add: Net Income 189,300
Dividends (25,000 )
Ending Retained Earning $175,800