Question

Balance Sheets, Net Income

Financial information related to the corporation of Ebony Interiors for February and March 2018 is as follows:

	February 28, 2018		March 31, 2018
Cash	139,600		237,000
Accounts receivable	79,100		90,900
Supplies	7,000		5,800
Accounts payable	$35,800		$38,700
Common stock	130,000		130,000
Retained earnings	?		?

b. Determine the amount of net income for March, assuming that no additional common stock was issued and no dividends were paid during the month.
$

c. Determine the amount of net income for March, assuming that no additional common stock was issued, but dividends of $29,000 were paid during the month.
$

Answer 1

Aus. ) EBONY INTERIORS - Balance sheet february 28, 2018 Assets Liabilities Cash $139, 600 Accounts payable $35,800 Accounts Receivable $79,100 Suerlies $ 7.000 | Stockhobler's equity $ 130.000 Retained Earrings & Tefal stockholders guity $189,900 Total Assets. $225,700 Total Wabilities s $295,700 1. Stockhol deis equity I Balance sheet march 31, 2018 Assets. I Liabilities I Cash $237,000 Accounts payable $38,700 Accounts Receivable $90,900 Supplies $5,800 Cmimar stock $130,000 Rebzined Ecknings | $ 165,000 Todelstockholder's $295,600 equity Togal Assets $333,700 Total Liabilities & Teakholder's exity $333,700

(B) Stockholders equity march 31 | Stockholdeis equity. february 26 Net Income $295,000 $189.900 $105, 100 o stockholden's equity Marell 3 = stockholder's equity, February 28 = Inorease in stockholders equity = Addy dividend o sofga Net Inconie = $189.900. $(05;100 $29.000 $134 100l
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