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TU) w UI We Owing account balance is carried forward to the next accounting petu! A) Depreciation Expense B) Dividends C) Service Revenue D) Accumulated Depreciation 11) 11) The net income of Hendley, Inc. for the year is $35,000. The dividends declared during the year were $43,000. Which of the following statements is true? A) Retained Earnings account decreases by $8,000. B) Retained Earnings will remain the same. C) Retained Earnings account increases by $43,000. D) Retained Earnings account decreases by $35,000. 12) Refer to the following adjusted trial balance after the first year of operations. 12) Credit | Retained earning Debit $1,900 8,900 200 22,3001 RE= BP Netincon -cos - Accounts Cash Accounts Receivable Office Supplies Equipment Accumulated Depreciation-Equipment Accounts Payable Salaries Payable Unearned Revenue Common Stock Dividends Service Revenue Salaries Expense Supplies Expense Depreciation Expense-Equipment Total $2,000 1,000 850 4001 3,600 Bp= Begining po ( Cas 3,000 Sestock Dinden 55,150 23,000 2,000 1.700 $63,000 $63,000 What will the balance of the Retained Earnings account be after the closing entries are posted? A) $25,450 B) $32,050 C) $31,450 D) $28,450 Olsteen, Inc., earned revenues of $65,000 and incurred expenses of $73,000. No dividends were declared. Which of the following statements is correct? A) The entry to close Income Summary requires a debit to the Income Summary account. B) The entry to close Income Summary is the same regardless of a net income or a net loss. C) The entries to close revenues and expenses will differ if there is a net loss. D) Retained Earnings will be debited for $8,000 and Income Summary will be credited for $8,000

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