Stosch Company's balance sheet reported assets of $40,000, liabilities of $15,000 and common stock of $12,000 as of December 31, Year 1. Retained earnings on the December 31, Year 2 balance sheet is $18,000 and Stosch paid a $14,000 dividend during Year 2. What is the amount of net income for Year 2?
A. $19,000
B. $13,000
C. $17,000
D. $21,000
Answer: A
You might also like to view...
Which the following organizations is primarily responsible for establishing GAAP today?
a. IRS b. Securities and Exchange Commission (SEC) c. SEC d. None of these choices.
A credit means that
a. the event has an effect on the right side of an account. b. the event is unfavorable. c. the event is favorable. d. the event always decreases the account.
Which of the following is true of proxies?
A) Proxies are not permitted to be submitted electronically. B) Proxies are signed by a corporation and sent to shareholders. C) Directors or officers of a corporation cannot hold proxies. D) Corporations are permitted to solicit proxies from shareholders.
U.S. Labor relations are set primarily by strike power, court orders, and public decision-making than by private administrations of contract terms.
Answer the following statement true (T) or false (F)