Love Company's accounting records show an after-closing balance of $21,000 in its Retained Earnings account on December 31, Year 2. During the Year 2 accounting cycle, Love earned $18,300 of revenue, incurred $10,800 of expense, and paid $3,100 of dividends. Revenues and expenses were recognized evenly throughout the accounting period. Required a. Determine the balance in the Retained Earnings account as of January 1, Year 3. b. Determine the balance in the temporary accounts as of January 1, Year 2. c. Determine the after-closing balance in the Retained Earnings account as of December 31, Year 1.
Love Company's accounting records show an after-closing balance of $21,000 in its Retained Earnings account on December 31, Year 2. During the Year 2 accounting cycle, Love earned $18,300 of revenue, incurred $10,800 of expense, and paid $3,100 of dividends. Revenues and expenses were recognized evenly throughout the accounting period. Required a. Determine the balance in the Retained Earnings account as of January 1, Year 3. b. Determine the balance in the temporary accounts as of January 1, Year 2. c. Determine the after-closing balance in the Retained Earnings account as of December 31, Year 1.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Love Company's accounting records show an after-closing balance of $21,000 in its Retained Earnings account on December 31, Year
2. During the Year 2 accounting cycle, Love earned $18,300 of revenue, incurred $10,800 of expense, and paid $3,100 of dividends.
Revenues and expenses were recognized evenly throughout the accounting period.
Required
a. Determine the balance in the Retained Earnings account as of January 1, Year 3.
b. Determine the balance in the temporary accounts as of January 1, Year 2.
c. Determine the after-closing balance in the Retained Earnings account as of December 31, Year 1.
d. Determine the balance in the Retained Earnings account as of June 30, Year 2.
a. Balance in the retained earnings, January 1, Year 3
b. Balance in the temporary accounts, January 1, Year 2
C. Closing retained earnings, December 31, Year 1
d.
Balance in the retained earnings, June 30, Year 2
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