1a. Wendy Corp\'s adjusted trial balance for March 31 is above. Show the closing

Question

1a. Wendy Corp's adjusted trial balance for March 31 is above. Show the closing entry.

1b. What is the ending balance of retained earnings that Wendy reports on its balance sheet for March 31?

WENDY CORP ADJUSTED TRIAL BALANCE 3/31/2018 Account title Cash Accounts receivable Prepaid insurance exp Inventories Equipment Unearned revenue Notes payable Accounts payable Interest payable Retained earnings Common stock Revenues Salary expense Depreciation expense Interest expense Debits Credits 1,024,000 35,200 4,500 15,500 36,000 8,300 50,000 2.200 3,300-) 6,500 1,000,000 91,200 33,800 SE 4,000 8,500 1,161,500 1,161,500

Explanation / Answer

Closing entries are entries passed at year end to close temporary accounts.

1B.

Revenues $ 91,200 Income summary $ 91,200 (To close revenue accounts) Income summary $ 46,300 Salary expense $ 33,800 Depreciation expense $    4,000 Interest expense $    8,500 (To close expenses) Income summary ($91,200-$46,300) $ 44,900 Retained earnigs $ 44,900 (To record transfer balance in income summary account)

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