On January 1, 2013, Baird Company had beginning balances as lows:
Assets = $2,250
Liabilities = $620
Common Stock = $800
During 2013, Baird paid dividends to its stockholders of $900. Given that ending retained earnings was $600, what was Baird's net income for the 2013 accounting period?
A) $770
B) $830
C) $1,250
D) $500

Question

Quizplus · Accepted Answer

On January 1: Assets = Liabilities + Common Stock + Retained Earnings$2,250 = $620 + $800 + Retained EarningsRetained Earnings = $830$830 + Net Income - $900 = $600Net Income = $670

On January 1, 2013, Baird Company Had Beginning Balances as Lows