Presented below are changes in all the account balances of Jackson Furniture Co.

Question

Presented below are changes in all the account balances of Jackson Furniture Co. during the current year, except for retained earnings.


Increase (Decrease)


Increase (Decrease)

Cash $87,630 Accounts Payable $(58,870)
Accounts Receivable (net) 46,760 Bonds Payable 83,270
Inventory 135,960 Common Stock 128,400
Investments (54,790) Additional Paid-in Capital 15,260

Compute the net income for the current year, assuming that there were no entries in the Retained Earnings account except for net income and a dividend declaration of $27,130 which was paid in the current year.

Explanation / Answer

87,630 Increase in cash +58,870 Decrease in Accounts Payable +46,760 Increase in Accounts Receivable -83,270 Increase in Bonds Payable +135,960 Increase in inventory -128,400 Increase in common stock -54,790 Decrease in investments -15,260 Increase in paid-in capital +27,130 dividend declared =74,630 Net income

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.