The Following Is the Adjusted Trial Balance for Baker Services

question 165

Multiple Choice

The following is the adjusted trial balance for Baker Services. $\begin{array}{|c|c|c|}\hline \text { Accounts } & \text { Debit } & \text { Credit } \\\hline \text { Cash } & \$ 34,000 & \\\hline \text { Accounts Receivable } & 28,000 & \\\hline \text { Prepaid Insurance } & 7,500 & \\\hline \text { Office Supplies } & 3,000 & \\\hline \text { Land } & 48,000 & \\\hline \text { Building } & 150,000 & \\\hline \text { Accumulated Depreciation-Building } & & \$ 15,500 \\\hline \text { Equipment } & 71,000 & \\\hline \text { Accumulated Depreciation-Equipment } & & 7,000 \\\hline \text { Accounts Payable } & & 23,000 \\\hline \text { Salaries Payable } & & 4,000 \\\hline \text { Unearned Revenue } & & 29,000 \\\hline \text { Mortgage Payable } & & 100,000 \\\hline \text { Common Stock } & & 10,000 \\\hline \text { Retained Earnings } & & 11,500 \\\hline \text { Dividends } & 22,000 & \\\hline \text { Service Revenue } & & 280,000 \\\hline \text { Salaries Expense } & 62,000 & \\\hline \begin{array}{l}\text { Depreciation Expense-Building and } \\\text { Equipment }\end{array} & 5,900 & \\\hline \text { Supplies Expense } & 14,000 & \\\hline \text { Insurance Expense } & 14,600 & \\\hline \text { Utilities Expense } & 20,000 & \\\hline \text { Total } & \$ 480,000 & \$ 480,000 \\\hline\end{array}$ After the closing entries are posted, what is the balance in Retained Earnings?

• A) $22,000
• B) $185,000
• C) $21,500
• D) $153,000

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Definitions:

Natural Law

a philosophy proposing that certain rights or values are inherent by virtue of human nature and can be universally understood through human reason.

Social Values

Principles and standards shared by a community that guide behavior and influence societal norms and the functioning of social institutions.

Ordinances

Local laws or regulations enacted by municipal governments to govern behavior and activities within their jurisdiction.

Municipalities

Political subdivisions within a state that have their own government and typically encompass cities, towns, or villages.