Critz Company was started on January 1, Year 1. During the month of January, Critz earned $7,500 of revenue and incurred $4,800 of expenses. During the remainder of Year 1, Critz earned $86,000 and incurred $51,000 of expenses. Critz closes its books on December 31 of each year. Required:

a. Determine the balance in the Retained Earnings account as of January 31, Year 1.
b. Determine the balance in the Revenue and Expense accounts as of January 31, Year 1.
c. Determine the balance in the Retained Earnings account as of December 31, Year 1, before closing.
d. Determine the balances in the Revenue and Expense accounts as of December 31, Year 1, before closing.
e. Determine the balance in the Retained Earnings account as of January 1, Year 2.
f. Determine the balance in the Revenue and Expense accounts as of January 1, Year 2.

a. $2,700

b. Revenue   = $7,500 and Expenses = $4,800

c. $37,700

d. Revenue = $93,500 and Expenses = $55,800

e.  $37,700

f. Revenue   = $0 and Expenses = $0

Explanation:

a. Balance in the Retained Earnings account as of January 31, Year 1.

Revenue                    $7,500

Less Expenses        ($4,800)

Net Profit                   $2,700

Retained Earnings Balance = Opening Retained Earnings + Profit - Dividends

                                             = $ 0 + $2,700 - $ 0

                                             = $2,700

b. Balance in the Revenue and Expense accounts as of January 31, Year 1.

Revenue   = $7,500

Expenses = $4,800

c. Balance in the Retained Earnings account as of December 31, Year 1, before closing.

Retained Earnings Balance = Opening Retained Earnings + Profit - Dividends

                                             = $2,700 + ($86,000 - $51,000) - $0

                                             = $37,700

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

Revenue  ($7,500 + $86,000) = $93,500

Expenses ($4,800 + $51,000) = $55,800

e. Balance in the Retained Earnings account as of January 1, Year 2.

Retained Earnings of December 31, Year 1 = Retained Earnings of January 1, Year 2

                                                                       = $37,700

f. Balance in the Revenue and Expense accounts as of January 1, Year 2.

Revenue   = $0

Expenses = $0

are you looking for a specific answer?

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know