Assume 2011 is the company's first year of business.There were no dividends declared in 2011 and $100 of dividends declared in 2012. Determine the missing amounts,1.Net income,2.Liabilities of $200,and 3.Retained earnings of $1,400,in the condensed income statement and balance sheet for the year ended December 31,2012.
A)1)Net income of $1,100; 2.Liabilities of $200; 3.Retained earnings of $1,400
B)1)Net income of $3,900; 2.Liabilities of $1,000; 3.Retained earnings of $1,300
C)1)Net income of $1,100; 2.Liabilities of $1,000; 3.Retained earnings of $1,200
D)1)Net income of $1,100; 2.Liabilities of $200; 3.Retained earnings of $1,200

Question

Assume 2011 is the company's first year of business.There were no dividends declared in 2011 and $100 of dividends declared in 2012.  Determine the missing amounts,1.Net income,2.Liabilities of $200,and 3.Retained earnings of $1,400,in the condensed income statement and balance sheet for the year ended December 31,2012.
A)1)Net income of $1,100; 2.Liabilities of $200; 3.Retained earnings of $1,400 
B)1)Net income of $3,900; 2.Liabilities of $1,000; 3.Retained earnings of $1,300 
C)1)Net income of $1,100; 2.Liabilities of $1,000; 3.Retained earnings of $1,200 
D)1)Net income of $1,100; 2.Liabilities of $200; 3.Retained earnings of $1,200

Quizplus · Accepted Answer

The Answer of Assume 2011 is the company's first year of business.There were no dividends declared in 2011 and $100 of dividends declared in 2012.  Determine the missing amounts,1.Net income,2.Liabilities of $200,and 3.Retained earnings of $1,400,in the condensed income statement and balance sheet for the year ended December 31,2012.
A)1)Net income of $1,100; 2.Liabilities of $200; 3.Retained earnings of $1,400 
B)1)Net income of $3,900; 2.Liabilities of $1,000; 3.Retained earnings of $1,300 
C)1)Net income of $1,100; 2.Liabilities of $1,000; 3.Retained earnings of $1,200 
D)1)Net income of $1,100; 2.Liabilities of $200; 3.Retained earnings of $1,200

Assume 2011 Is the Company's First Year of Business