Check my work Love Company\'s accounting records show an after-closing balance o

Question

Check my work Love Company's accounting records show an after-closing balance of $19,800 in its Retained Earnings account on December 31, Year 2. During the Year 2 accounting cycle, Love earned $15,900 of revenue, incurred $9,600 of expense, and paid $1,900 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 Book c.Determine the after-closing balance in the Retained Earnings account as of December 31, Year 1 Hint Print d. Determine the balance in the Retained Earnings account as of June 30, Year2 a. Balance in the retained eamings, 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 eamings, June 30, Year 2

Explanation / Answer

C) closeing retained earnings December 31st year 1

Closeing Balance of retained earnings - net income + Dividends,so net income=15,900-9,600=6,300

(19800-6300)+1900

d) Balance of retained earnings jun30, year2

Revenue and expense of year2 will not effect retained earnings till December 31st so opening balance of year2 still continue

Amount$ a) Balance in retained earnings in January 1st, year 3 (because last year closeing balance is current year opening balance) 19,800 b) Balance in temperory Account in January 1st year 2 because (Balance in temperory Account transferred to perminant Account) 0

C) closeing retained earnings December 31st year 1

Closeing Balance of retained earnings - net income + Dividends,so net income=15,900-9,600=6,300

(19800-6300)+1900

15,400

d) Balance of retained earnings jun30, year2

Revenue and expense of year2 will not effect retained earnings till December 31st so opening balance of year2 still continue

15,400

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