Question - Stockholders' Equity section of a balance sheet Bretton Publishing Company has the following selected accounts balances at June 30, 2010.
Inventory $113,000
Machinery and equipment 107,000
Dividends 5,000
Depreciation expense 10,000
Rent expense 25,000
Utilities expense 8,000
Cost of goods sold 82,000
Common stock, no par with $1.00
Stated value, 1,000 shares
Authorized and issued 1,000
Accumulated depreciation 64,000
Salary expense 80,000
Retained earnings, June 30, 2009 120,000
Sales revenue 230,000
1. Journalize all required closing entries for the year.
2. Calculate the balance in Retained earnings at June 30, 2010. Use a T-account to show your calculations.