Answer:
Retained Earnings Account will show a balance of $130000
Explanation:
Retained Earnings Balance is Calculated as Follows
                                    $
Opening Retained Earnings            80000
Add Profit for the year (125000-60000) Â 65000
Less Dividends                      (15000)
Retained Earnings at End of year        130000
Answer:
$130,000
Explanation:
We must first determine the year's profit:
total revenues   $125,000
- total expenses  ($60,000)
net income      $65,000
you need to close net income:
Dr Net income 65,000
  Cr Retained earnings 65,000
you also need to close dividends account:
Dr Retained earnings 15,000
  Cr Dividends expense 15,000
the balance for retained earnings account:
debit             credit
                 80,000
                 65,000
15,000 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â
                130,000
