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Financial Accounting

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Moderate

Closing Entry: Net Loss

FINACT-632FA7
Account Titles Adjusted Trial Balance
Debits Credits
Cash \$12,400
Accounts Receivable 93,000
Prepaid Insurance Expense 5,000
Inventory 11,500
Equipment 45,000
Accumulated Depreciation - Equipment \$10,000
Accounts Payable 4,800
Unearned Revenue 8,000
Common Stock 35,000
Retained Earnings 113,700
Sales Revenue 87,500
Dividend Revenue 2,710
Salaries Expense 29,800
Cost of Goods Sold 50,450
Rent Expense 2,850
Depreciation Expense 5,000
Income Tax Expense 5,760
Interest Expense 950
Totals \$261,710 \$261,710


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

A

\$9,600 debit

B

\$9,600 credit

C

\$4,600 debit

D

\$4,600 credit