Prepare Closing Entries to Retained Earnings
The Century Company’s adjusted trial balance contains the following balances as of December 31:
Retained Earnings $42,500; Dividends $10,000; Sales $100,000; Cost of Goods Sold $40,000; Selling and Administrative Expenses $15,000; Interest Expense $7,500.
Prepare the closing entries for The Century Company. Close the temporary accounts straight to retained earnings.
| General Journal | ||
|---|---|---|
| Description | Debit | Credit |
| To close the revenue account. | ||
| Cost of goods sold | ||
| Selling and administrative expense | ||
| To close the expense accounts. | ||
| To close the dividends account. | ||
The balance of $42,500 in the retained earnings account is from the beginning of the year. What is the ending retained earnings balance after posting the closing entries?
$
