The following selected accounts and account balances were taken from the records of Bates Company. Except as otherwise indicated, all balances are as of December 31, 2013, before the closing entries were recorded.

Cash received from common stock issued during 2013 ...... $ 4,500
Cash .......................... 10,500
Revenue ......................... 18,000
Salary expense ....................... 13,000
Cash flow from operating activities ................ 4,500
Notes payable ....................... 6,000
Utility expense ........................ 1,800
Dividends .......................... 1,000
Cash flow from financing activities ............... 5,000
Rent expense ....................... 1,600
Land .......................... 25,000
Retained earnings, January 1, 2013 .............. 19,700
Common stock, December 31, 2013 ............... 20,000

Required: 

a. Prepare the income statement Black would include in its 2013 annual report. 
b. Identify the accounts that should be closed to the Retained Earnings account. 
c. Determine the Retained Earnings account balance at December 31, 2013. Identify the reasons for the difference between net income and the ending balance in Retained Earnings. 
d. What are the balances in the Revenue, Expense, and Dividend accounts on January 1, 2014? Explain.