A company started the year with the following: Assets $102.000: Liabilities $32.000: Common Stock $62.000: Retained Earnings $8.000. During the year, the company earned revenue
A company started the year with the following: Assets $102.000: Liabilities $32.000: Common Stock $62.000: Retained Earnings $8.000.
During the year, the company earned revenue of $5.200, all of which was received in cash, and incurred expenses of $3.100, all of which were unpaid as of the end of the year. In addition, the company paid dividends of $1,200 to owners. Assume no other activities occurred during the year.
What was the amount of net Income for the year?
- $5,200
- $1,200
- $2,100
- $3,100
Step by Step Solution
3.58 Rating (155 Votes )
There are 3 Steps involved in it
Step: 1
Correct option is 3 Net i...
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Authors: Gary A. Porter, Curtis L. Norton
7th Edition
978-0-538-4527, 0-538-45274-9, 978-1133161646
