Respuesta :
Answer:
Based on the opening retained earnings value, none of the options is correct.
The correct Syracuse`s retained earnings after closing would be $7,480.
Explanation:
Retained earnings is the residual proportion of the total profit of the firm that is left after deducting dividend received by the shareholders.
For each accounting period, closing residual retaining is calculated by adding the opening retained earnings with the net amount of the total profit remaining after deducting dividend.
To calculate closing retained earnings, it is important to get the total profit of the firm and then deduct dividend:
                            $
Service Revenue             8,050
Interest Revenue             1000
                          9,050
Salaries Expense            (4,900)
Operating Expense           (1,550)
Interest Expense             (700)
Net Profit                   1900
Dividend                   (1300)
Retained Earning             600
Retained Earning B/f         6,880
Retained Earning B/d        7,480
