Question: Carr Company was started on January 1, 2016. During the month of January, Carr earned $4,600 of revenue and incurred $3,000 of expenses. During the

Carr Company was started on January 1, 2016. During the month of January, Carr earned $4,600 of revenue and incurred $3,000 of expenses. During the remainder of 2016, Carr earned $52,000 and incurred $42,000 of expenses. Carr closes its books on December 31 of each year.

Required

a. Determine the balance in the Retained Earnings account as of January 31, 2016.

b. Determine the balance in the Revenue and Expense accounts as of January 31, 2016.

c. Determine the balance in the Retained Earnings account as of December 31, 2016, before closing.

d. Determine the balances in the Revenue and Expense accounts as of December 31, 2016, before closing.

e. Determine the balance in the Retained Earnings account as of January 1, 2017.

f. Determine the balance in the Revenue and Expense accounts as of January 1, 2017.

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a The balance in the Retained Earnings account as of January 31 2016 is zero Explanation The revenue is recorded in the Revenue account and is not tra... View full answer

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