During the year, the company earned revenue of $5,200, all of which was received
ID: 2496617 • Letter: D
Question
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?
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?
Explanation / Answer
Net Income = 5200 - 3100 = $ 2100
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