Calculating retained earnings
Oulette Publishing Company has the following selected account balances at June 30, 2012.
|
Inventory |
$ 112,000 |
Common stock, no par with $0.50 |
|
|
Machinery and equipment |
108,000 |
stated value, 900 shares |
|
|
Dividends |
8,000 |
authorized and issued |
$ 450 |
|
Depreciation expense |
9,000 |
Accumulated depreciation |
61,000 |
|
Rent expense |
19,000 |
Salary expense |
85,000 |
|
Utilities expense |
5,000 |
Retained earnings, June 30, 2011 |
114,000 |
|
Cost of goods sold |
81,000 |
Sales revenue |
240,000 |
Requirements
1.Journalize all required closing entries for the year.
2.Calculate the balance in Retained earnings at June 30, 2012. Use a T-account to show your calculations.