The Following Data Were Taken from the Accounting Records of Lorenzo

question 14

Essay

The following data were taken from the accounting records of Lorenzo Company. Except where indicated, the balances are as of December 31, 2013 before closing entries have been made. $\begin{array}{|l|r|}\hline \text { Service revenue } & \$ 83,000 \\\hline \text { Retained earnings } & 47,500 \\\hline \text { Accounts receivable } & 13,250 \\\hline \text { Salaries expense } & 44,000 \\\hline \text { Operating expense } & 7,700 \\\hline \text { Accounts payable } & 11,400 \\\hline \text { Supplies expense } & 380 \\\hline \text { Prepaid rent } & 2,000 \\\hline \text { Common stock } & 45,000 \\\hline \text { Supplies } & 200 \\\hline \text { Dividends } & 1,200 \\\hline \text { Insurance expense } & 800 \\\hline \text { Rent expense } & 10,000 \\\hline \text { Unearned revenue } & 765 \\\hline\end{array}$
Required:
a) List the accounts that should be closed at the end of 2013.
b) Prepare an income statement for Lorenzo Company for 2013.
c) What is the balance in retained earnings after closing entries have been made?

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Definitions:

Strike Procedures

The policies and steps legally required to be followed by a union or employees when organizing and executing a strike action.

Public Sector Strikes

Work stoppages or protests initiated by employees within government services or institutions to press for better working conditions or pay.

Public Interest

The welfare or well-being of the general public and society.

Employer's Cost

Refers to the expenses borne by an employer in the course of business, including wages, benefits, training, equipment, and other costs related to employing and maintaining a workforce.