Reference no: EM132095370
Question - Davis Company was started on January 1, 2014. During the month of January, Davis earned $5,800 of revenue and incurred $3,600 of expenses. During the remainder of 2014, Davis earned $58,000 and incurred $48,000 of expenses. Davis closes its books on December 31 of each year.
Required -
a. Determine the balance in the Retained Earnings account as of January 31, 2014.
b. Determine the balance in the Revenue and Expense accounts as of January 31, 2014.
c. Determine the balance in the Retained Earnings account as of December 31, 2014, before closing.
d. Determine the balances in the Revenue and Expense accounts as of December 31, 2014, before closing.
e. Determine the balance in the Retained Earnings account as of January 1, 2015.
f. Determine the balance in the Revenue and Expense accounts as of January 1, 2015.
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