Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please explain how to get the answer. it should be D but i dont know why During 2017 the Snell Consulting Company experienced the following

Please explain how to get the answer. it should be D but i dont know why image text in transcribed
image text in transcribed
During 2017 the Snell Consulting Company experienced the following three events: The balance in their Unearned Consulting Revenue account decreased $90,000 from January 1 to December 31. No additional Unearned Revenue was booked in 2017. The balance in their Prepaid Rent account decreased $70,000 from January 18 to December 31st. No additional rent was paid in advance in 2017. They declared and paid $5,000 worth of cash dividends (both occurred in 2017) and paid their bank $5,000 cash to repay the principal borrowed with a note payable from 2016. Ignoring interest expense and income tax expense which of the following is Correct for 2017? A. Net Income was $10,000 B. Net Income was $15,000 C. Retained Earnings Increased $20,000 D. Retained Earnings Increased by $15,000 E. Two of the above are correct

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Islamic Banks Positioning Study Regulatory Specificities And Audit Particularities

Authors: Hassen BEN OUHIBA

1st Edition

6206279790, 978-6206279792

More Books

Students also viewed these Accounting questions

Question

Apply your own composing style to personalize your messages.

Answered: 1 week ago

Question

Format memos and e-mail properly.

Answered: 1 week ago