FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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2:14
Love Company's accounting records show an after-closing balance of $20,900 in its Retained Earnings account on
December 31, Year 2. During the Year 2 accounting cycle, Love earned $18,100 of revenue, incurred $10,700 of expense,
and paid $3,000 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
$
$
$
20,900
0
4,400
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Transcribed Image Text:2:14 Love Company's accounting records show an after-closing balance of $20,900 in its Retained Earnings account on December 31, Year 2. During the Year 2 accounting cycle, Love earned $18,100 of revenue, incurred $10,700 of expense, and paid $3,000 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 $ $ $ 20,900 0 4,400
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