During the year, the company earned revenue of $6,600, all of which was received
ID: 2484838 • Letter: D
Question
During the year, the company earned revenue of $6,600, all of which was received in cash, and incurred expenses of $3,800, all of which were unpaid as of the end of the year. In addition, the company paid dividends of $2,600 to owners. Assume no other activities occurred during the year.
What was the amount of net income for the year?
$3,800
$2,800
$2,600
$6,600
.
A company started the year with the following: Assets $125,000; Liabilities $42,500; Common Stock $72,500; Retained Earnings $10,000.During the year, the company earned revenue of $6,600, all of which was received in cash, and incurred expenses of $3,800, all of which were unpaid as of the end of the year. In addition, the company paid dividends of $2,600 to owners. Assume no other activities occurred during the year.
What was the amount of net income for the year?
$3,800
$2,800
$2,600
$6,600
.
Explanation / Answer
The amount of Net Income for the year = $6600
The earned revenue = $6600 and expenses worth $3800 are Incurred but are unpaid , so Net Income for the year is $6600
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