Question - Stockholders' Equity section of a balance sheet Bretton Publishing Company has the following selected accounts balances at June 30, 2010.

Inventory $113,000

Machinery and equipment 107,000

Dividends 5,000

Depreciation expense 10,000

Rent expense 25,000

Utilities expense 8,000

Cost of goods sold 82,000

Common stock, no par with $1.00

Stated value, 1,000 shares

Authorized and issued 1,000

Accumulated depreciation 64,000

Salary expense 80,000

Retained earnings, June 30, 2009 120,000

Sales revenue 230,000

1. Journalize all required closing entries for the year.

2. Calculate the balance in Retained earnings at June 30, 2010. Use a T-account to show your calculations.