i Safari File Edit View History Bookmarks Window Help 66 Wed

i Safari File Edit View History Bookmarks Window Help 66%) Wed 2:35 PM 2018 Spring Tutor Bio (1)-Introduction to Accounting 080(Page) Homework 4 E Menu O Meredith Milholland ACCT20653:080-Intro to ACCT20653:080-Intro to Accounting-TTH Accounting-TTH My Subscriptions Courses ACCT20653:080-Intro to Accounting-TTH Financial: Ch 4: Understanding Financial Statements/ Homework 4 Financial: Ch 1: Financial Accounting and Business Decisions ASSIGNMENT NAVIGATION Financial: Ch 2: Processing Accounting Information QUESTION 11 Not complete Marked out of 1.00 Flag question 1 2345 As of December 31, 2015, Lincolnshire Company had assets of $1,850,000 and liabilities of $570,000. During 2016, the stockholders invested an additional $100,000 and paid dividends of $60,000 from the business. 6 789 10 Financial: Ch 3: Accrual Basis of Business Accounting What is the net income for the company during 2016, assuming that as of December 31, 2016, assets were $1,960,000, and liabilities were $510,000? 11213 14 15 Select one: Financial: Ch 4: Understanding Financial Statements A. $ 40,000 B. $210,000 C. $170,000 D. $130,000 Finish attempt. Financial: Ch 13: Analysis and Interpretation of Financial Statements Check Managerial: Ch 1: Overview of Managerial Accounting Previous page Next page Managerial: Ch 2: Managerial Accounting Concepts and Cost Flows Save Answers 31

Solution

Total assets=Total liabilities+Total equity

Total equity as on 2015=(1,850,000-570,000)=$1,280,000

Total equity as on 2016=(1,960,000-510,000)=$1,450,000

Ending equity=Beginning equity+Additional investments+Net income-Dividends

1,450,000=1,280,000+100,000+Net income-60,000

Hence Net income=(1,450,000-1,280,000-100,000+60,000)

which is equal to

=$130,000.