Question

Orioles Computer Repair Shop started the year with total assets of $303000 and total liabilities of $215000. During the year, the business recorded $523000 in computer repair revenues, $299000 and expenses, and Oriole paid dividends of $49200.
The net income reported by Oriole Computer Repair Shop for the year was _______.

Answer 1

Answer:

The net income reported by Oriole Computer Repair Shop for the year was $224,000

Explanation:

The net income reported by Oriole Computer Repair Shop for the year = Total computer repair revenues - Total expenses

During the year, Orioles Computer Repair Shop recorded $523,000 in computer repair revenues, $299,000 and expenses.

Net income = $523,000 - $299,000 = $224,000

Noted: Oriole paid dividends of $49,200 did not affect to net income.