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Financial Accounting

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Moderate

Closing Entry: Net Income

FINACT-RRAWTE

Red Brick Road Company provides the following adjusted trial balance information at year-end:

Account Titles Adjusted Trial Balance
Debits Credits
Cash \$12,400
Accounts Receivable 93,000
Inventory 11,500
Accounts Payable \$4,800
Unearned Revenue 4,500
Common Stock 38,500
Retained Earnings 53,700
Sales Revenue 87,500
Dividend Revenue 2,710
Salaries Expense 9,800
Cost of Goods Sold 50,450
Rent Expense 2,850
Depreciation Expense 5,000
Income Tax Expense 5,760
Interest Expense 950
Totals \$191,710 \$191,710


What amount will be recorded in the retained earnings account at the end of the period when the books are closed?

A

\$15,400 debit

B

\$15,400 credit

C

\$19,900 debit

D

\$19,900 credit