the changes to the account balances of Fritzs furniture Co
are as follows

Cash 79,000

Acct Rec 45,000

Inventory 127,000

investments (47,000)

Acct payable (51,000)

Bonds Payable 82,000

Common stock 125,000

addition paid in Capital 13,000
task
compute the net income
assuming there is no entires in Retained Earnings acct except net income
and a dividend declaration of 19,000 which was paid in the current year

KongTheKonqueror

The first thing to remember that Assets = Liabilities + Equity, so your total change in assets needs to be equal to your total change in liabilities and equity.

If you add all the asset changes you get: 79000 + 45000 +127000 - 47000 = 204,000
If you add all the liabilities changes you get: -51000 + 82000 = 31,000
If you add all the equity changes you get: 125000 + 13000 - 19000 (dividends) = 119,000

Which gives us: 204,000 = 31,000 + 119,000 + Net Income
204,000 = 150,000 + Net Income
Net Income = 54,000