ParrishSheets Chapter 1 Homework Quiz dria Henshaw Attempt 1

Parrish-Sheets Chapter 1 Homework -Quiz dria Henshaw: Attempt 1 Save Question 13 (1 point) Calculate the missing amount for each of the following situations. Revenues for 2014 Dividends declared in 2014 Expenses for 2014 January 1 retained earnings balance December 31 retained earnings balance $3,000 $2,000 $1,000 $6,000 Make sure your answer does not include a \"$\" (dollar sign) or \" number; such as \"55000\". ays Save Question 14 (1 point)

Solution

Computation of Net Income

Revenues

$                                                                     3,000

Less: Expenses

$                                                                   -1,000

Net Income

$                                                                     2,000

Ending Retained Earnings = Beginning Retained Earnings + Net Income – Dividends

                                             6,000 = Beginning Retained Earnings+2,000-2,000

                                                Beginning Retained Earnings=6,000

January 1 Retained Earnings Balance =6,000

Computation of Net Income
Revenues	$                                                                     3,000
Less: Expenses	$                                                                   -1,000
Net Income	$                                                                     2,000