Question

began the year with retained earnings of $105000. During 2022, the company issued $79500 of common stock for cash. The company recorded revenues of $748000, expenses of $637000, and paid dividends of $36000. What was Skysong's net income for the year 2022?

Answer 1

Answer:

Skysong's net income for the year is $111,000 a shown below

Explanation:

Net income=Revenues minus expenses

Net income=$748,000-$637,000

Net income=$111,000

Retained earnings for the year=Opening retained earnings+net income-dividends

Retained earnings=$105,000+$111,000-$36,000

                              =$180,000

The retained that would be shown in the balance sheet in the equity section at the end of the year is $180,000 which has increased by $75000 compared to previous year