During the year, Ortiz Company was started on January 1, Year 1. During the year Ortiz Company earned $48,000 of revenue and incurred $13,000 of expenses. Ortiz Company closes its books on December 31 of each year.

Required:

Determine the balance in the Retained Earnings account as of December 31, Year 1, before closing.

Determine the balances in the Revenue and Expense accounts as of December 31, Year 1, before closing.

Determine the balance in the Retained Earnings account as of January 1, Year 2.

Determine the balance in the Revenue and Expense accounts as of January 1, Year 2.