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the earned revenues of $15,000 and incurred expenses of $8,000. The company declared and paid cash dividends of $1000 What is
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Answer #1

Answer:- B. Credit balance of $7,000

Computation:-

  Revenue $15,000

Less: Expenses ($8,000)

Net Income ($7,000)

  • Net Income(Profit) has a credit balance.
  • And Net Loss has a debit balance.
  • Dividend paid is reduced from retained earning in balance sheet, it does not effect the Income of the company.

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