Question

The following information is reported for Kinney Corporation at the end of 2013.

- Accounts Receivable $103,500
- Retained Earnings ?
- Accounts Payable 49,500
- Supplies Inventory 40,500
- Cash Common Stock 6,000
- Equipment 621,000 495,000
a. Compute the amount of retained earnings at the end of 2013.
b. If the amount of retained earnings at the beginning of 2013 was $135,000, and $54,000 in cash dividends were declared and paid during 2013, what was its net income for 2013?

Answer 1

a. Compute the amount of retained earnings at the end of 2013.

With 621K in equip. With 495K in equip.

709.500 583.500

b what was its net income for 2013?

With 621K in equip. With 495K in equip.

Net Income 628.500 502.500

Step-by-step explanation:

With 621K in equip. With 495K in equip.

- Accounts Receivable $103,500 103.500 103.500

- Supplies Inventory 40,500 40.500 40.500

- Equipment 621,000 495,000 621.000 495.000

765.000 639.000

- Accounts Payable 49,500 49.500 49.500

- Cash Common Stock 6,000 6.000 6.000

- Retained Earnings ? 709.500 583.500

765.000 639.000

Retainend earnings

Begining 135000 135000

Cas Dividens -54000 -54000

Retained earnings 709.500 583.500

Net Income 628.500 502.500