Question

Multiple Choice Question 121 Blue Spruce Corp, began the year with retained earnings of $121000. During 2022, the company issued $78500 of common stock for cash. The company recorded revenues of $749000, expenses of $672000, and paid dividends of $45000. What was Blue's net income for the year 2022? $110500 $77000 $155500 $32000 Click if you would like to Show Work for this question: Open Show Work

Answer 1

Solution:
	Calculation of net income
	For the year 2022
	Revenues	$           7,49,000
	Less: Expenses	$           6,72,000
	Net Income for the year 2020	$               77,000
	Answer = Option 2 = $ 77,000
	Note:
	1) Dividend Paid in not part of income statement.
	2) Dividend paid is shown in Retained earnings statement
	3) Issue of common stock for cash does not affect the net income