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    Preparing Closing Entries

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    Preparing Closing Entries
    1) Prepare the necessary closing entries at 12-31-08.
    2) What is the balance in the Retained earnings account after closing entries are posted?

    Accounts Receivable $128,000
    Accounts Payable 7,500
    Advertising expense 2,500
    Accumulated Depreciation 12,500
    Cash 18,300
    Certificate of Deposit 22,000
    Common Stock 20,000
    Deprecation Expense 4,800
    Dividends 2,000
    Equipment 10,000
    Interest Receivable 400
    Interest Revenue 1,800
    Notes Payable 10,000
    Prepaid rent 3,200
    Rent Expense 9,800
    Retained Earnings 6,800
    Salaries Expense 26,000
    Salaries Payable 5,000
    Service Revenue 85,500
    Supplies 400
    Supplies Expense 1,900

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    Solution Summary

    This solution looks at preparing closing entries and finding the balance in the retained earnings account.