Retained Earnings 8500 Dividends 2000 Sales 20000 Cost of Goods Sold 8000

Retained earnings 8500 dividends 2000 sales 20000

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Retained Earnings $8,500; Dividends $2,000; Sales $20,000; Cost of Goods Sold $8,000; Sellingand Administrative Expenses $3,000; Interest Expense $1,500.Prepare an income statement for the year. Do not use negative signs with your answers.Century Company Income Statement For Year Ended December 31Sales$ 20,000ExpensesCost of goods sold$ 8,000Selling & administrative expense3,000Interest expense1,500Total expenses12,500Net income$ 7,500CLICK HERE TO REVIEW LEARNING OBJECTIVES±
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QUESTION 5CorrectMark 23.00 out of 23.00Prepare Closing Entries to Retained EarningsThe Century Company’s adjusted trial balance contains the following balances as of December31:Retained Earnings $8,500; Dividends $2,000; Sales $20,000; Cost of Goods Sold $8,000; Sellingand Administrative Expenses $3,000; Interest Expense $1,500.Prepare the closing entries for The Century Company. Close the temporary accounts straightto retained earnings.General JournalDescriptionDebitCreditSales20,0000Retained earnings020,000To close the revenue account.Retained earnings12,5000Cost of goods sold08,000Selling and administrative expense03,000Interest expense01,500To close the expense accounts.Retained earnings2,0000Dividends02,000To close the dividends account.The balance of $8,500 in the retained earnings account is from the beginning of the year. Whatis the ending retained earnings balance after posting the closing entries?$ 14,000
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