Question

Big-mouth frog corporation had revenues of $300,000, expenses of $200,000, and dividends of $45,000. When income summary is closed to retained earnings, the amount of the debit or credit to retained earnings is a

a. Debit of $55,000.

b. Debit of $100,000.

c. Credit of $55,000.

d. Credit of $100,000.

Answer 1

Answer:

c

Explanation:

Retained Earnings is always a credit which increases the Owner's Equity.