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

Essay

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.