The following information was drawn from the accounting records of Kwon Company as of December 31, 2012, before the temporary accounts had been closed. The Cash balance was $4,500, and Notes Payable amounted to $1,600. The company had revenues of $4,800 and expenses of $2,100. The company's Land account had a $6,500 balance. Dividends amounted to $600. There was $1,300 of common stock issued.

Identify which accounts would be classified as permanent and which accounts would be classified as temporary.

Assuming that Kwons beginning balance (as of January 1, 2012) in the Retained Earnings account was $6,000, determine its balance after the nominal accounts were closed at the end of 2012.

What amount of net income would Kwon Company report on its 2012 income statement?

Is net income equal to closing retained earnings?