The following information is available for the Noir Detective Agency. After closing entries are posted, what will be the balance in the Retained earnings account Net Loss $ 27,600 Retained earnings 294,000 Dividends 36,000

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Answer:

$230,400

Explanation:

The computation of the ending retained earning balance is shown below:

The ending balance of retained earning = Opening balance of retained earnings + net income - net loss - cash dividend paid

= $294000 - $27,600 - $36,000

= $230,400

We simply deduct the net income and the dividend from the beginning balance of retained earning so that the correct balance could come.

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