In year 1, Company A has the following info in itsfinancial statements: Retained Earnings (beginning...

In year 1, Company A has the following info in its financial statements: Retained Earnings (beginning balance) of $32,000; Retained Earnings (ending balance) of $95,000; Revenue of $100,000, Expenses (including tax expense) of $30,000, and dividends declared $7,000.

What amount will be shown as Net Income in Income Statement?

$95,000

$70,000

$63,000

$77,00

Solutions

Expert Solution

Net Income = Revenue - Expenses = $100000-$30000 = $70000

Checking :

The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid

$95,000 = $32,000 + net income - $7,000

So, the net income is $70,000

ekkarill92 answered 2 years ago

Next > < Previous

Related Solutions

Loot Company has a beginning retained earnings balance of $6,000. It has the following account balances...

Loot Company has a beginning retained earnings balance of $6,000. It has the following account balances at the end of the first year of operations: Accounts Payable $37,000 Revenues $106,000 Unearned Revenues $15,000 Salaries Expense $14,000 Dividends $8,000 Utilities Expense $12,000 Accrued Expenses $13,000 Advertising Expense $10,000 Prepaid Expenses $16,000 Short-term Investments $20,000 Cash $33,000 Land $50,000 Common Stock $53,000 What is the ending balance in Retained Earnings?

These items are taken from the financial statements of Oriole Company for 2022. Retained earnings (beginning...

These items are taken from the financial statements of Oriole Company for 2022. Retained earnings (beginning of year) $33,200 Utilities expense 2,130 Equipment 64,500 Accounts payable 20,100 Cash 14,450 Salaries and wages payable 4,470 Common stock 21,900 Dividends 12,000 Supplies 3,700 Debt investment (long-term) 5,900 Trademarks 2,200 Service revenue 70,700 Prepaid insurance 4,970 Maintenance and repairs expense 1,670 Depreciation expense 3,290 Accounts receivable 15,280 Insurance expense 2,510 Salaries and wages expense 39,720 Accumulated depreciation—equipment 21,950 Prepare an income statement for...

These items are taken from the financial statements of Ivanhoe Company for 2022. Retained earnings (beginning...

These items are taken from the financial statements of Ivanhoe Company for 2022. Retained earnings (beginning of year) $33,800 Utilities expense 2,160 Equipment 66,300 Accounts payable 20,560 Cash 13,750 Salaries and wages payable 6,640 Common stock 21,800 Dividends 12,000 Supplies 3,600 Debt investment (long-term) 5,600 Trademarks 1,900 Service revenue 71,700 Prepaid insurance 7,140 Maintenance and repairs expense 1,640 Depreciation expense 3,270 Accounts receivable 15,160 Insurance expense 2,530 Salaries and wages expense 40,700 Accumulated depreciation—equipment 21,250 1. Prepare an income statement...

The Embroidery Shoppe had beginning retained earnings of $18,670. During the year, the company reported sales...

The Embroidery Shoppe had beginning retained earnings of $18,670. During the year, the company reported sales of $83,490, costs of $68,407, depreciation of $8,200, dividends of $950, and interest paid of $478. The tax rate is 34 percent. What is the retained earnings balance at the end of the year?

the balance in retained earnings at the end of the year is determined by retained earnings...

the balance in retained earnings at the end of the year is determined by retained earnings balance at the ''beginning of the year: a. plus revenues, minus liabilities b. plus net income, minus dividends c. plus assets, minus liabilities d. plus accounts, minus deferrals

These items are taken from the financial statements of Kingbird, Inc. for 2017. Retained earnings (beginning...

These items are taken from the financial statements of Kingbird, Inc. for 2017. Retained earnings (beginning of year) $ 33,380 Utilities expense 2,150 Equipment 68,380 Accounts payable 22,250 Cash 14,300 Salaries and wages payable 5,510 Common stock 12,000 Dividends 12,000 Service revenue 72,730 Prepaid insurance 6,010 Maintenance and repairs expense 1,650 Depreciation expense 3,140 Accounts receivable 15,650 Insurance expense 2,660 Salaries and wages expense 41,730 Accumulated depreciation—equipment 21,800 Prepare an income statement for the year ended December 31, 2017. Kingbird,...

P4-1 (Multiple-Step Income, Retained Earnings) The following information is related to Dickinson Company for 2014.Retained earnings...

P4-1 (Multiple-Step Income, Retained Earnings) The following information is related to Dickinson Company for 2014.Retained earnings balance, January 1, 2014 $ 980,000Sales revenue 25,000,000Cost of goods sold 16,000,000Interest revenue 70,000Selling and administrative expenses 4,700,000Write-off of goodwill 820,000Income taxes for 2014 1,244,000Gain on the sale of investments (normal recurring) 110,000Loss due to fl ood damage—extraordinary item (net of tax) 390,00Loss on the disposition of the wholesale division (net of tax) 440,000Loss on operations of the wholesale division (net of tax) 90,000...

These items are taken from the financial statements of Beginning Retained Earnings $31,000 Utilities $2,000 Equipment...

These items are taken from the financial statements of Beginning Retained Earnings $31,000 Utilities $2,000 Equipment $66,000 Accounts Payable $18,300 Cash $10,100 Salary & Wages Payable $3,000 Common Stock $40,000 Dividends $8,000 Service Revenue $64,000 Pre-Paid Insurance $3,500 Patent $14,000 Maintenance and Repairs Expense $1,800 Long-Term Debt $17,000 Depreciation Expense $3,600 Accounts Receivable $11,700 Insurance Expense $2,200 Salary & Wages Expense $37,000 Accumulated Depreciation - Equipment $17,600 Unearned Revenue $3,200 Copyright $5,000 Investment in ABC Corporation $9,900 Land Held for...

Which of the following statements about the statement of retained earnings is false? A. It covers...

Which of the following statements about the statement of retained earnings is false? A. It covers the same time period as the income statement and provides a link between the income statement and the balance sheet. B. It need not be prepared if a separate statement of stockholders' equity is prepared. C. It shows whether a corporation has sufficient funds to pay a cash dividend. explain

The following info is available for Johnson Company for the year ended December 31,2017 Beginning cash...

The following info is available for Johnson Company for the year ended December 31,2017 Beginning cash balance $35,000 Accounts payable decrease 3,200 Depreciation expense 76,000 Accounts receivable increase 8,200 Inventory increase 13,000 Net income 269,100 Cash received for sale of land at book value 35,000 Sales revenue 747,000 Cash dividend paid 12,000 Income tax payable increase 4,700 Cash used to purchase building 144,000 Cash used to purchase treasury stock 32,000 Cash received from issuing bonds 206,000 Prepare a statement of...

Subjects