Answer:
The net adjustments to be made to retained earnings due to the closing entries would be net income of $15,000 ($25,000 - $10,000) and dividends of $2,000.
Explanation:
Retained earnings is the accumulated amount of net income left after payment of dividends to shareholders. The adjustments usually made to retained earnings relate to net income and dividends (cash or stock). While the former is usually added to retained earnings, the latter is usually deducted.
In the question, the only relevant adjustments are net income of $15,000 ($25,000 - $10,000) and dividends of $2,000; every other account relates to other balance sheet components (either assets or liabilities). Therefore, the adjusted retained earnings balance at the end of the year would be: $20,000 + $15,000 - $2,000 = $33,000 (adjusted retained earnings).
The net adjustment would be made to Retained Earnings due to closing entries is increment of $13,000
Revenue $25,000
Less expenses -$10,000
Net income $15,000
Less: Dividend -$2,000
Net adjustment made to retained earnings $13,000
Here we deduct the expenses from revenue so that the net income could come after that the dividend should be deducted from the net income so that the net adjustment could come.
Learn more about the closing entry: https://brainly.com/question/24345471
