Chapter 2, Problem 22E

a)

To determine

Identify the accounts that are classified as permanent and temporary accounts’.

b)

To determine

Ascertain the retained earnings after the temporary accounts were closed at the end of the year 2018.

c)

To determine

Ascertain the amount of net income that would be reported on the Income statement of Company W for the year ended 2018.

d)

To determine

Explain the reasons for the difference of the net income from the ending balance of retained earnings.

e)

To determine

Report the balances in the revenue, expense, and dividend accounts on January 1, 2019.