At December 31, 2013, Cabot Corporation reports revenue of $3,500,000 and expenses of $2,300,000. During the year, the company declared and paid dividends of $400,000. The company had $1,500,000 in retained earnings at the beginning of 2013.
Instructions
a. Prepare the closing entries for 2013.
b. Prepare a statement of retained earnings for December 31, 2013.

Question

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The Answer of At December 31, 2013, Cabot Corporation reports revenue of $3,500,000 and expenses of $2,300,000. During the year, the company declared and paid dividends of $400,000. The company had $1,500,000 in retained earnings at the beginning of 2013.
Instructions
a. Prepare the closing entries for 2013.
b. Prepare a statement of retained earnings for December 31, 2013.

At December 31, 2013, Cabot Corporation Reports Revenue of $3,500,000