Tiptoe Shoes, had annual revenues of $193,000, expenses of $107,700, and paid dividends of $21,200 during the current year. The retained earnings account before closing had a balance of $305,000. The ending retained earnings balance after closing is:

The ending retained earnings balance after closing is : $369,100

Explanation:

The Retained Earnings include an adjustment of profit for the year and dividend paid to the opening balance.

The Calculation of closing balance is as follows:

Opening Balance $305,000

Add Profit for the year ($193,000 - $107,700) $85,300

Less Dividends paid ($21,200)

Closing Balance $369,100

Conclusion:

The ending retained earnings balance after closing is : $369,100