Presented below is an alphabetical list of 2019 pre-closing account balances of Eagles Corp, a
merchandising company. Assume all accounts have normal balances.
Accounts
Balance
Accounts Payable
2,000
Accounts Receivable
4,500
Accumulated Depreciation - Buildings
7,000
Administrative and General Expenses
4,625
Buildings
36,500
Cash
10,000
Common Stock
12,500
Depreciation Expense - Buildings
1,750
Dividends (Common Stock)
2,000
Interest Expense
500
Land
20,000
Prepaid Rent
1,000
Retained Earnings, Beginning Balance for 2016
16,500
Sales Revenue
126,500
Selling Expenses
45,500
Unearned Revenue
2,125
A. What is the balance of retained earnings for Eagles Corp after closing entries are
made for 2019?
B. How many temporary accounts does Eagles Corp need to close?