Question

The following information is reported for Kinney Corporation at the end of 2013.

Answer 1

Answer:

a. Compute the amount of retained earnings at the end of 2013.

With 621K in equip.     With 495K in equip.

                709.500 583.500

b what was its net income for 2013?

                                                  With 621K in equip.     With 495K in equip.

Net Income                                      628.500 502.500

Explanation:

                                  With 621K in equip.     With 495K in equip.

     

- Accounts Receivable $103,500  103.500  103.500  

- Supplies Inventory 40,500            40.500  40.500  

- Equipment 621,000 495,000   621.000  495.000

                              765.000         639.000

- Accounts Payable 49,500            49.500  49.500  

- Cash Common Stock 6,000       6.000  6.000  

- Retained Earnings ?                   709.500 583.500  

                                                  765.000 639.000  

Retainend earnings    

Begining                                             135000 135000

Cas Dividens                                      -54000 -54000

   

Retained earnings                             709.500 583.500

Net Income                                      628.500 502.500