The Retained earnings account has a credit balance of 23800

The Retained earnings account has a credit balance of $23,800 before closing entries are made. If total revenues for the period are $75,200, total expenses are $55,000, and dividends are $12,600, what is the ending balance in the Retained earnings account after all closing entries are made?

A. $44000

B. $23800

C. $31400

D. $11200

E. 20200

Solution

C. $31,400

Ending balance in the Retained earnings account = $23,800 + $75,200 - $55,000 - $12,600 = $31,400