The adjusted trial balance of a company at the end of the accounting year, December 31, showed the following.
|
Account Titles
|
Debit
|
|
Credit
|
|
Cash
|
$16,000
|
|
|
|
Machinery
|
72,000
|
|
|
|
Accumulated depreciation
|
|
|
$12,800
|
|
Accounts payable
|
|
|
5,600
|
|
Capital Stock
|
|
|
16,000
|
|
Retained earnings
|
|
|
47,200
|
|
Service revenue
|
|
|
32,000
|
|
Interest expense
|
3,200
|
|
|
|
Operating expenses
|
13,600
|
|
|
|
Depreciation expense
|
8,800
|
|
|
|
Totals
|
$113,600
|
|
$113,600
|
Prepare all the required closing entries for the company at December 31. Calculate the year ending balance in retained earnings.