If service revenue is $260,000, total expenses are $175,000, additional capital stock issued of $13,000 and dividends declared are $4,000, what is the change in retained earnings as a result of the closing process?

Increase by $81,000

Explanation:

Data provided in the question:

Service revenue = $260,000

Total expenses = $175,000

Additional capital stock issued = $13,000

Dividends declared = $4,000

Now,

The change in retained earnings = Revenue - Expenses - Dividends declared

= $260,000 - $175,000 - $4,000

= $81,000

Hence,

Increase by $81,000