Question

The following information relates to Novak Corp. for the year 2022. Retained earnings, January 1, 2022 $58,560 Advertising expense $2,200 Dividends during 2022 6,100 Rent expense 12,690 Service revenue 76,250 Utilities expense 3,780 Salaries and wages expense 34,160 Other comprehensive income (net of tax) 490 After analyzing the data, compute net income.

Answer 1

THE NOVAK CORP. NET INCOME $23640 AND RETAINED EARNING IS $76100.

Explanation:

To calculate the net income of NOVAK CORP. is

           PARTICULAR                                           AMOUNT(IN $)

       SERVICE REVENUE                                      76250

    COMPREHENSIVE INCOME                            490

LESS:ADVERTISING EXPENSE                             2200

         SALARIES AND WAGES                              34160

          UTILITIES EXPENSE                                    3780

            RENT EXPENSE                                       12960

               NET INCOME                                          23640

NOVAK CORP. RETAINED INCOME FOR THE YEAR 2022,31 DECEMBER

PARTICULAR                                                         AMOUNT(IN $)    

RETAINED EARNING                                                 58560

+NET INCOME                                                             23640

                                                                                     82200

LESS: DIVIDEND                                                           6100

RETAINED EARNING ON 31,DECEMBER                     76100