Refer to the Following Adjusted Trial Balance

question 27

Multiple Choice

Refer to the following adjusted trial balance.
What will be the final ending balance in the Retained Earnings account after posting the closing entries?

• A)$17,800
• B)$20,800
• C)$24,200
• D)$23,800

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Definitions:

Incorporating

The process of legally declaring a business as a corporation, enabling the owners to separate their personal assets from the business assets.

Liability

A financial obligation or debt that an individual or company owes, which must eventually be settled or paid off.

Common Stockholders

Individuals or entities that own the common shares of a company, granting them rights to vote on corporate matters and receive dividends.

Gross Investment

The total amount of money spent on new capital assets, not accounting for depreciation, indicating the aggregate investment in an economy.