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sPowered by BbeCampusePortfolios Community Content CollectionHW Assignment 1enuDetermining Retained Earnings and Net IncomeThe following information appears in the records of Bock Corporation at year-end:Accounts Receivable $28,000 Retained EarningsAccounts Payable 12,000 SuppliesCashCommon Stock$?8,0007,000 Equipment, net 145,000115,000a. Calculate the balance in Retained Earnings at year-end.b. If the amount of the retained earnings at the beginning of the year was$38,000 and $13,000 in dividends is paid during the year, calculate net incomefor the year

Question

How do I find retained earnings without the net income? I am attaching the homework problem with the information given in the problem

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HW Assignment 1
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Determining Retained Earnings and Net Income
The following information appears in the records of Bock Corporation at year-
end:
Accounts Receivable $28,000 Retained Earnings
Accounts Payable 12,000 Supplies
Cash
Common Stock
$?
8,000
7,000 Equipment, net 145,000
115,000
a. Calculate the balance in Retained Earnings at year-end.
b. If the amount of the retained earnings at the beginning of the year was
$38,000 and $13,000 in dividends is paid during the year, calculate net income
for the year
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s Powered by Bb eCampus ePortfolios Community Content Collection HW Assignment 1 enu Determining Retained Earnings and Net Income The following information appears in the records of Bock Corporation at year- end: Accounts Receivable $28,000 Retained Earnings Accounts Payable 12,000 Supplies Cash Common Stock $? 8,000 7,000 Equipment, net 145,000 115,000 a. Calculate the balance in Retained Earnings at year-end. b. If the amount of the retained earnings at the beginning of the year was $38,000 and $13,000 in dividends is paid during the year, calculate net income for the year

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Step 1

Part-1. Retained earnings balance at the end of year shall be computed by adding up all the assest as Total assets and then outside liabilities shall be deducted from it, to arrive at the stockholder's equity. The common Stock capital balance shall be deducted from the above figure to come to the amount of Retained earnings balance at the end.

The same has been computed as above.

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Step 2

Part-2, Net income shall be needed to be computed by making reverse computation. The Dividend paid is added in the Retained earnings balance at the end and gthen Re...

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