Problem:
The adjusted trial balance prepared Decembers 31, for Cheryl Fontaine & Company, shipping agent, containds the following accounts:
- Comissions earned (+CR) $84,900
- Wages Expense (+DR) $36,000
- Insurance Expense (+DR) $1,900
- Utilities Expense (+DR) $8,200
- Depriciations Expense (+DR) $9,800
- Dividenda (+DR) $12,000
- Common Stock (+CR) $50,000
- Retaind Earnings (+CR) $22,100
Required:
Question: Prepare journal entries to close the accounts directly to retained earnings. After these entries are posted, what is the ending balance in the retained earnings account?
Note: Please show how to work it out.