Presented below are the balances from Zo Developments Ltd.s general ledger as at January 31, 2020: Required

Presented below are the balances from Zoë Developments Ltd.’s general ledger as at January 31, 2020:

Required

a. Prepare the necessary closing entries for Zoë Developments at January 31.

b. Determine the ending Retained Earnings account balance.

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DR CR Cash 56,000 Accounts receivable 135,000 124,000 Inventory Prepaid expenses 5,000 Equipment 361,000 Accumulated depreciation, equipment 120,000 32,000 Accounts payable Unearned revenue 5,000 Wages payable 11,000 Common shares 103,000 Retained earnings 88,000 Dividends declared 21,000 Sales revenue 956,000 Interest revenue 19,000 Cost of goods sold 560,000 Depreciation expense 10,000 Wages expense 41,000 Utilities expense 9,000 Insurance expense 12,000