Connect Q Accounting Ter McGrawHill Education Campu x cGrawH

Connect Q Accounting Ter McGraw-Hill Education Campu x cGraw-Hill Secure https://newconnect.mheducation.com/flow/connect.html iz 1 Campus-Intro F × Saved On January 1, 2011, Baird Company had beginning balances as follows: Assets $1,475 Liabilities: $560 Common Stock $510 During 2011 Baird paid dividends to its stockholders of $500. Given that ending retained earnings was $740, what was Baird\'s net income for the 2011 accounting period? 2 00:01:03 Multiple Choice $1,475 $905 $835 $510

Solution

Answer

Opening Retained Earnings = Assets – Liabilities – Common Stock

= 1,475 – 560 – 510

Opening Retained Earnings = $405

Transferred to Retained earnings = Closing Retained Earnings – Opening Retained Earnings

= 740 – 405

Transferred to Retained earnings = $335

Net Income = Dividend + Transferred to Retained Earnings

= 500 + 335

Net Income = $835