sagnik2422
May 9, 2014, 03:17 PM
Hi I need some help with steps on this :
The changes in account balances for Elder Company for 2006 are as follows:
Assets : $480,000 debit
Common Stock : $250,000 credit
Liabilities : $160,000 credit
Paid- In Capital Excess of Par : $30,000 credit
Assuming the only change in R/E in 2006 were for net income and $50,000 dividend, what was net income for 2006?
A) $40,000 B) 90,000 C) 60,000 D) 70,000
Thanks in advance.
I do not know the beginning balance of R/E so how do I find it?
The changes in account balances for Elder Company for 2006 are as follows:
Assets : $480,000 debit
Common Stock : $250,000 credit
Liabilities : $160,000 credit
Paid- In Capital Excess of Par : $30,000 credit
Assuming the only change in R/E in 2006 were for net income and $50,000 dividend, what was net income for 2006?
A) $40,000 B) 90,000 C) 60,000 D) 70,000
Thanks in advance.
I do not know the beginning balance of R/E so how do I find it?