Question

The following are all changes in the account balances of Martinez Ltd. during the current year, except for Retained Earnings:

		Increase (Decrease	)				Increase (Decrease	)
Cash		$100,000			Accounts payable		$(69,000	)
Accounts receivable (net)		63,000			Unearned revenue		22,000
Inventory		162,000			Bonds payable		75,600
Investments in FV-NI securities		(28,000	)		Common shares		124,000
					Contributed surplus		68,000

Calculate the net income for the current year, assuming that there were no entries in the Retained Earnings account except for net income and a dividend declaration of $16,200, which was paid in the current year.

Net income for the current year

$enter the Net income for the current year in dollars

Answer 1

Answer:
Particulars	Amount (in $ )
Cash	$ 100,000
Accounts receivable	$ 63,000
Inventory	$ 162,000
Investments	($ 28,000)
Change in Balances of Assets	$ 297,000
Particulars	Amount (in $ )
Accounts payable	($ 69,000)
Unearned revenue	$ 22,000
Bonds payable	$ 75,600
Change in Balances of Liabilities	$ 28,600
Change in Balances of Stockholders' Equity         = Assests Balance (-) Liabilities Balance         =   $ 297,000 (-) $ 28,600 )	$ 268,400
Particulars	Amount (in $ )
Change in Balances of Stockholders' Equity	$ 268,400
Less: Common stock	($ 124,000)
Less: Contributed surplus	($ 68,000)
Add: Dividends declared	$ 16,200
Net income	$ 92,600