Ask Question
24 September, 11:51

Question 8 Presented below are changes in the account balances of Wenn Company during the year, except for retained earnings. Increase (Decrease) Increase (Decrease) Cash $28,860 Accounts payable $32,580 Accounts receivable (net) (17,010) Bonds payable (19,620) Inventory 52,010 Common stock 63,760 Plant assets (net) 46,730 Paid-in capital 15,390 The only entries in Retained Earnings were for net income and a dividend declaration of $17,520. (a) Compute the net income for the current year.

+1
Answers (1)
  1. 24 September, 13:35
    0
    Solution:

    Change in assets = 28,860-17,010+52,010+46,730 = 110,590 (increase)

    Change in liabilities = 32,580-19,620=12,960 (increase)

    Change in stockholders equity = 110,590-12,960 = 97,630

    Net increase = 97,630

    Change in common stock = 63,760

    Additional paid in capital = 15,390

    Net increase accounted for = 63,760-15,390 = 48,370

    Increase in retained earnings (net income) = 32560

    Compute the net income for the current year.

    Net income $32560
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Question 8 Presented below are changes in the account balances of Wenn Company during the year, except for retained earnings. Increase ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers