What is the balance in the retained earnings account

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Reference no: EM13745314

The following financial information was taken from the books of Walker Spa:

Account Balances as of December 31, 2013

Accounts Recievable $54,000

Accounts Payable $15,000

Advertising Expense $7,000

Cash $ 80,600

Common Stock $ 40,000

Dividends $10,000

Land $27,000

Prepaid Rent $6,400

Rent Expense $15,600

Retained Earnings 1/1/2013 $38,800

Salaries Expense $64,000

Salaries Payable $23,600

Service Revenue $153,000

Supplies $800

Supplie Expense $5,000

A. Prepare the journal entries necessary to close the temporary accounts on December 31, 2013, for Walker Spa.

B. What is the balance in the Retained Earnings account after the closing entries are posted?

Reference no: EM13745314

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