Question - Closing entries with net income
After all revenue and expense accounts have been closed at the end of the fiscal year, Income Summary has a debit of $175,400 and a credit of $235,000. At the same date, Retained Earnings has a credit balance of $272,000, and Dividends has a balance of $22,800.
a. Journalize the entries required to complete the closing of the accounts.
b. Determine the amount of Retained Earnings at the end of the period.