Reference no: EM132711916

Question - Fox Co. adjusted trial balance included the following accounts, all at their normal account balance but listed in random order, at December 31, 2020:

Fox Co. Adjusted Trial Balance

Cost of goods sold 400,000

Trading securities 250,000

Loss on early bond call 150,000

Sales 1,000,000

Unearned revenue 200,000

Selling expenses 300,000

Dividends 50,000

Retained earnings 500,000

Gain on building sale 100,000

Based on these Adjusted Trial Balance account balances, what amount should Fox record for Retained earnings in its 12/31/20 closing entry?

a. 100,000

b. 700,000

c. 400,000

d. 200,000