After closing on December 31, 2010, Direct Delivery Company (DDC) had $9,200 of assets, $4,000 of liabilities, and $1,400 of common stock. During January of 2011 DDC earned $1,500 of revenue and incurred $600 of expense. DDC closes it books each year on December 31.
Required
a. Determine the balance in the Retained Earnings account as of December 31, 2010.
b. Determine the balance in the Retained Earnings account as of January 1, 2011.
c. Determine the balance in the Retained Earnings account as of January 31, 2011.