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VPAB13H3 F LEC01 Final Exam Quiz

Single choice

Complete the sentence. Net income of an accounting period increases...

Options
A.Revenue
B.Assets
C.Owner’s Equity and/or Retained Earnings
D.Success
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To tackle the completion, we need to recall how net income affects the accounting equation. Option 1: Revenue. Revenue increases net income, but on its own it does not complete the sentence; net income is a consequence of revenues minus expenses, not a sta......Login to view full explanation

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Similar Questions

Wildhorse Company began the year 2025 with retained earnings of $651000. During the year, the company sold additional shares of stock for $1017000, recorded revenues of $649000, expenses of $376000, and paid dividends of $141000. What was Wildhorse's retained earnings balance at the end of 2025?

Which of the following statements regarding net income is correct?

Problem 18-4 (Algo) Statement of retained earnings; financial statement effects [LO18-5, 18-7] Comparative statements of retained earnings for Renn-Dever Corporation were as follows: RENN-DEVER CORPORATION Statements of Retained Earnings For the Years Ended December 31   2026 2025 2024 Balance at beginning of year $6,737,452 $5,494,552 $5,644,552 Net income (loss) 3,208,700 2,100,900 (150,000) Deductions:       Stock dividend (30,000 shares) 210,000     Common shares retired (100,000 shares)   200,000   Common stock cash dividends 809,950 658,000 0 Balance at end of year $8,926,202 $6,737,452 $5,494,552 At December 31, 2023, common shares consisted of the following: Common stock, 1,700,000 shares at $1 par $ 1,700,000 Paid-in capital—excess of par 5,100,000 Required: Infer from the reports the events and transactions that affected Renn-Dever Corporation’s retained earnings during 2024, 2025, and 2026. Prepare the journal entries that reflect those events and transactions. (Hint: In lieu of revenues and expenses, use an account titled "Income summary" to close net income or net loss.) Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

Note: this question is not related to question 3.  Calculate the retained earnings closing balance.  Dividends  1,947 Revenues 115,389 Expenses 66,004 Retained earnings, opening balance 40,803 Share capital 150,048

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