Closing the accounts
The following accounts and account balances were taken from the records of Black Company. Except as otherwise indicated, all balances are as of December 31, 2011, before the closing entries had been recorded.
Cash received from common stock issued during 2011 | $ 3,500 |
Cash | 7,800 |
Revenue | 8,000 |
Salary expense | 2,900 |
Cash flow from operating activities | 2,500 |
Notes payable | 2,000 |
Utility expense | 800 |
Dividends | 1,200 |
Cash flow from financing activities | 2,300 |
Rent expense | 1,400 |
Land | 20,200 |
Retained earnings, January 1,2011 | 15,600 |
Common stock, December 31,2011 | 10,000 |
Required
a. Prepare the income statement Black would include in its 2011 annual report.
b. identify the accounts that should be closed to the Retained Earnings account.
c. Determine the Retained Earnings account balance at December 31,2011. Identify the reasons for the difference between net income and the ending balance in Retained Earnings.
d. What are the balances in the Revenue, Expense, and Dividend accounts on January 1, 2012? Explain.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.