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Question - Love Company's accounting records show an after-closing balance of $20,200 in its Retained Earnings account on December 31, Year 2. During the Year 2 accounting cycle, Love earned $16,700 of revenue, incurred $10,000 of expense, and paid $2,300 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.
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