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As of December 31, Year 2, Blue Haven Company had total assets of $100,000, total liabilities of $30,000, and common stock of $50,000. The companys
As of December 31, Year 2, Blue Haven Company had total assets of $100,000, total liabilities of $30,000, and common stock of $50,000. The company’s Year 2 Income Statement contained revenue of $16,000 and expenses of $11,000. The Year 2 Statement of Changes in Stockholders’ Equity stated that $2,000 of dividends were paid to investors.
Required:
- Determine the before-closing balance in the Retained Earnings account on December 31, Year 2.
- Determine the after-closing balance in the Retained Earnings account on December 31, Year 2.
- Determine the before-closing balances in the Revenue, Expense, and Dividend accounts on December 31, Year 2.
- Determine the after-closing balances in the Revenue, Expense, and Dividend accounts on December 31, Year 2.
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