Blue Fin started the current year with assets of $702,000,liabilities of $351,000 and common stock...

Blue Fin started the current year with assets of $702,000, liabilities of $351,000 and common stock of $202,000. During the current year, assets increased by $402,000, liabilities decreased by $51,000 and common stock increased by $277,000. There was no payment of dividends to owners during the year.

Use the information above to answer the following question. What was the amount of Blue Fin's net income for the year?

a.$176,000

b.$453,000

c.$226,000

d.$277,000

Expert Solution

*Option(A) $176,000 is the correct answer.

*Accounting Equation, Assets=Liabilities + Stockholders Equity;

*Assets=Liabilities + Common stock + Retained Earnings;

Account Type	Normal balance	To be increased	To be decreased
Assets	Debit	Debit	Credit
Liabilities	Credit	Credit	Debit
Equity	Credit	Credit	Debit
Revenue	Credit	Credit	Debit
Expenses	Debit	Debit	Credit

ekkarill92 answered 2 years ago

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