BPO Week 1 - w/Solutions ACCT 205 Dr. Brent W Bost The Romo Model Boat Shop started the year with total assets of $220,000, total liabilities of $115,000, and retained earnings of $48,000. During the year, the business recorded $600,000 in revenues, $444,000 in expenses, and the company paid dividends of $30,000. 1. The net income reported by The Romo Model Boat Shop for the year was: A) $ 90,000 B) $ 125,000 C) $ 136,000 D) $ 156,000 2. Romo's Model Boat Shop balance of retained earnings at the end of the year was: A) $105,000 B) $126,000 C) $136,000 D) $174,000 3. The following information was taken from the records of Rectangle Corporation for the year ended December 31, 2019 Advertising expense Income tax expense Accounts payable Dividends paid Retained earnings (Jan 1, 2016) Consulting fees revenue Rent expense Supplies expense $120,000 78,000 80,700 90,000 347,160 600,000 70,200 101,400 The net income reported by Rectangle Corporation for the year ended December 31, 2019 was: A) $149,700 B) $230,400 C) $308,400 D) $218,400

The Romo Model Boat Shop started the year with total assets of $220,000, total liabilities of $115,000, and retained earnings of $48,000. During the year, the business recorded $600,000 in revenues, $444,000 in expenses, and the company paid dividends of $30,000. 1. The net income reported by The Romo Model Boat Shop for the year was: A) $90,000 B) $125,000 C) $136,000 D) $156,000 2. Romo's Model Boat Shop balance of retained earnings at the end of the year was: A) $105,000 B) $126,000 C) $136,000 D) $174,000 3. The following information was taken from the records of Rectangle Corporation for the year ended December 31, 2019 The net income reported by Rectangle Corporation for the year ended December 31, 2019 was: A) $149,700 B) $230,400 C) $308,400 D) $218,400