Closing Entries Included Debits to Revenues for a Total of $8,000

question 109

Multiple Choice

Closing entries included debits to revenues for a total of $8,000 credits to expenses for a total of $4,100, and a credit to dividends for $650. The net change in Retained Earnings for the month was:

• A)cannot be calculated with the information provided.
• B)$3,250.
• C)$3,900.
• D)$4,550.

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Definitions:

Repudiated

Referring to the rejection or denial of a claim, agreement, or duty typically in a legal context.

Offer Accepted

The confirmation by one party to agree to the terms of an offer made by another party, leading to a contract.

Common Law

A legal system based on court decisions and customs, as opposed to statutory laws passed by legislatures.

Liability to Customers

The legal responsibility of a business to compensate customers for harm, loss, or injury resulting from its products or services.