The Total Revenues of $6,500, Total Expenses of $3,500, and Dividends

question 65

Short Answer

The total revenues of $6,500, total expenses of $3,500, and dividends of $500 were recorded in the closing entries. Calculate the net change in retained earnings for the month.

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Definitions:

Animal Magnetism

A historical concept that hypothesized a natural etheric fluid thought to exist in the human body, related to the now-debunked science of mesmerism.

Hypnotized

A state in which a person appears to be in a trance, often induced by another person, where they can be more easily influenced by suggestions.

Psychoanalysis

A therapeutic approach and theory of personality developed by Sigmund Freud, focusing on unconscious processes and unresolved conflicts.

Willing Participant

An individual who agrees to take part in a research study or experiment without any coercion, fully understanding the nature of the research.