As of December 31, 2014, Blue Haven Company had total assets of $20,000, total liabilities of $6,000, and common stock of $10,000. The company’s 2014 income statement contained revenue of $3,000 and expenses of $2,000. The 2014 statement of changes in stockholder’s equity stated that $300 of dividends were paid to investors.
a. Determine the before-closing balance in the Retained Earnings account on December 31, 2014.
Retained Earning Before Closing:
b. Determine the after-closing balance in the Retained Earnings account on December 31, 2014.
Retained earning after closing
c. Determine the before-closing balances in the Revenue, Expense, and Dividend accounts on December 31, 2014.
Revenue:
Expense:
Dividend:
d. Determine the after-closing balances in the Revenue, Expense, and Dividend accounts on December 31, 2014.
Revenue:
Expense:
Dividend: