Thanks Question 22 10 pts (TCO B) Retained earnings at 1/1/1X was $90,000 and at

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Question 22 10 pts (TCO B) Retained earnings at 1/1/1X was $90,000 and at 12/31/1X it was $210,000. During 201x, cash dividends of S50,000 were paid and a stock dividend of $40,000 was issued. Both dividends were properly charged to retained eamings You are to provide the missing closing entry Please indicate debit (DR) or credit (CR) to the left of the account title and place a comma between the account title and the amount of the adjustment Paragraph DR Income Summary 210.000 CR Retained Eamings 210.000 Ending balance 1210

Explanation / Answer

Begininig Retained earning balance = 90000

Less: Cash dividend paid = 50000

Less: Stock dividend paid = 40000

Closing retained earning balance = 210000

Profit for the current period = 90000-50000-40000+210000 = 210000

Journal Entry:

DR Income summary 210000

CR Retained Earnings 210000

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