Closing Entries The adjusted trial balance of the Matthews Corporation, prepared as of December $31,$ contains the following accounts:

Debit Credit Service fees earned $$102,500$ Interest income $6,500$ Salaries expense $$49,800$ Advertising expense $4,300$ Depreciation expense $9,500$ Income tax expense $9,900$ Common stock $80,000$ Retained earnings $57,700$ Cash dividends $17,000$

Prepare journal entries to close the accounts directly to Retained Earnings. After these entries are posted, what is the ending balance in the Retained Earnings account?

Answer rating: 100% (QA)

To close the accounts directly to Retained Earnings you need to transfer the balances of the revenue ... View the full answer