During the year, A Salt & Buttery, Inc., had revenue of $86,000 of which $17,000 was...

Question

Question

business accounting

Answer 1

Answer #1

Net income = Revenue - Expenses

Net income =( 86,000 - 29,000)

Net income = 57,000

Net income for the year equals 57,000.

Note:

1. Revenue and expenses are recorded on accrual basis and not on cash basis.

2. Revenues are recorded as and when it is earned. Receipts of money is not considered.

3. Expenses are recorded as and when it is incurred. Payment of money is not considered.

4. Dividends are the appropriation of profits.

5. All the amounts are in $.

Answer 2

Similar Homework Help Questions

During the year, A Salt & Buttery, Inc., had revenue of $95,000 of which $11,000 was...

During the year, A Salt & Buttery, Inc., had revenue of $95,000 of which $11,000 was collected from customers. It also had expenses of $28,000 of which $3,000 was paid. The owners were paid $20,000 in dividends. Net income for the year equals DO NOT INCLUDE $ IN ANSWER
During the year, A Salt & Buttery, Inc., had revenue of $77,000 of which $8,000 was...

During the year, A Salt & Buttery, Inc., had revenue of $77,000 of which $8,000 was collected from customers. It also had expenses of $26,000 of which $3,000 was paid. The owners were paid $20,000 in dividends. Net income for the year equals ______.
At the beginning of the year, Vendors, Inc., had owners' equity of $50,630. During the year,...

At the beginning of the year, Vendors, Inc., had owners' equity of $50,630. During the year, net income was $6850 and the company paid dividends of $4630. The company also repurchased $8930 in equity. What was the owners' equity account at the end of the year?

at the begining of the year, vendors, inc., had owners equity of $51,020. during the year,...

at the begining of the year, vendors, inc., had owners equity of $51,020. during the year, net income was $7,200 and the company paid dividends of $4,820. the company also repurchased $9220 in equity. what was the owners equity account at the end of the year?
At the beginning of the year, Vendors, Inc., had owners' equity of $50,435. During the year,...

At the beginning of the year, Vendors, Inc., had owners' equity of $50,435. During the year, net income was $6,675 and the company paid dividends of $4,535. The company also repurchased $8,785 in equity. What was the cash flow to stockholders for the year?
Bramble Corporation had net sales of $5,060,000 and interest revenue of $86,000 during 2017. Expenses for...

Bramble Corporation had net sales of $5,060,000 and interest revenue of $86,000 during 2017. Expenses for 2017 were cost of goods sold $3,120,000; selling expenses $434,000; administrative expenses $550,000; and interest expense $23,000. Bramble’s tax rate is 40%. The corporation had 560,000 shares of common stock authorized and 56,000 shares issued and outstanding during 2017. Prepare a single-step income statement for the year ended December 31, 2017. BRAMBLE CORPORATION Income Statement For the Year Ended December 31, 2017

Manhattan Inc. had Assets of $140,000 and Liabilities of $112,000 on January 1. During the year...

Manhattan Inc. had Assets of $140,000 and Liabilities of $112,000 on January 1. During the year Liabilities decreased by $17,500 and the company earned net income of $63,000. Dividends of $ 20,000 were paid. The balance of Assets at the end of the year was: $220,500 $185,500 $165,500 explain equation $8,000 Detroit Holdings Inc. had Assets of $82,000 and Liabilities of $71,000 on January 1. During the year Assets increased by $20,000 and the company earned net income of $27,000. No dividends...
At the beginning of the year, Vendors, Inc, had owners' equity of $48,875. During the year,...

At the beginning of the year, Vendors, Inc, had owners' equity of $48,875. During the year, net income was $5,275 and the company paid dividends of $3,775. The company also repurchased $7,625 in equity. What was the cash flow to stockholders for the year? Multiple Choice $9125 -$3,850 $3,850 -$11,400 $11,400
During the year, Sand, Inc. had $120,000 in revenues, $48,000 in expenses, and paid $3,600 in...

During the year, Sand, Inc. had $120,000 in revenues, $48,000 in expenses, and paid $3,600 in dividends. Net income equals: Multiple Choice $72,000. $75,600 O $120,000 O O $68,400

Warner Island, Inc. began 2018 with cash of $75,000. During the year, Warner Island earned revenue...

Warner Island, Inc. began 2018 with cash of $75,000. During the year, Warner Island earned revenue of $240,000 and collected $90,000 from customers. Expenses for the year totaled $157,000, of which Warner Island paid $75,000 in cash to suppliers and $70,000 in cash to employees. The company received $2,500 cash for interest revenue and paid $15,000 for income taxes. Warner Island also paid $26,000 to purchase equipment and a cash dividend of $26,000 to its stockholders during 2018. Prepare the...