Asked by Andrew Elmowitz on May 19, 2024
Verified
The adjusted trial balance of Tahoe Company at the end of the accounting year,December 31,2019,showed the following:
A.Prepare all the required closing entries for Tahoe Company at December 31,2019.
B.Calculate the 2019 ending balance in retained earnings.
Adjusted Trial Balance
An adjusted trial balance is a list of all the accounts of a company, showing the balances after adjusting entries have been made for accruals, deferrals, and other adjustments.
Closing Entries
Journal entries made at the end of an accounting period to transfer the balances in temporary accounts to permanent accounts and to prepare the company's books for the next period.
Retained Earnings
The portion of net earnings not paid out as dividends but retained by the company to be reinvested in its core business or to pay debt.
- Understand the process for preparing closing entries in accounting.
- Ascertain net income, accumulated earnings, and per-share income.
Verified Answer
B.$59,000 + $8,000* = $67,000 (balance of retained earnings at the end of 2019).* ($40,000 - $32,000)
Learning Objectives
- Understand the process for preparing closing entries in accounting.
- Ascertain net income, accumulated earnings, and per-share income.
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