what-is-the-effect-of-closing-entries-on-retained-earnings-if-a-company-has-a-ne

Question

What is the effect of closing entries on retained earnings if a company has a net income of $15,000 and declared dividends of $3,000?

Accepted Answer

Retained earnings increase by $12,000.

Answer

Retained earnings decrease by $3,000.

Answer

Retained earnings remain unchanged.

Answer

Retained earnings increase by $15,000.

What is the effect of closing entries on retained earnings if a company has a net income of \$15,000 and declared dividends of \$3,000?