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Problem 1: A company's ledger accounts and their end-of-period balances before closing entries are posted are shown below. What amount will be posted to Retained earnings in the process of closing the Income Summary account? (Assume all accounts have normal balances.)
Retained earnings $5,250
Dividends 7,350
Revenue 21,000
Rent expense 2,100
Salaries expense 5,000
Insurance expense 235
Depr. Expense-equipment 320
Accum depr.-equipment 960
Multiple Choice
Option 1: $14,305 credit.
Option 2: $13,345 credit.
Option 3: $13,345 debit.
Option 4: $5,995 credit.
Option 5: $5,995 credit.
Financial Statement Analysis and Preparation
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