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Question
Frosty Inc. has the following balances on December 31 prior to closing entries:
| Revenues | $35,000 |
| Retained Earnings, Jan. 1 | 10,000 |
| Cash | 7,000 |
| Expenses | 23,000 |
| Accounts Payable | 4,000 |
| Dividends | 1,000 |
| Supplies | 18,000 |
Based upon the balances above, what net adjustment would be made to Retained Earnings due to closing entries?
a. Increase of $11,000.
b. Increase of $13,000.
c. Increase of $12,000.
d. Increase of $14,000.
Answer
This answer is hidden. It contains 62 characters.
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