(Answered) Backgrounda company started the year with the

Accounting

BACKGROUND.

A company started the year with the following:

Assets- $106,000; Liabilities- $36,000; Contributed Capital- $66,000; Retained Earnings- $4,000.

During the year, the company earned revenue of $5,600, all of which was received in cash, and incurred expenses of $3,300, all of which was unpaid as of year end. In addition, the company paid dividends of $1,600 to owners. Assume no other activities occurred during the year.

QUESTION

(a) What was the amount of net income for the year?
$5,600
$2,300
$3,300
$1,600

(b) The amount of retained earnings at the end of the year is?
$6,300
$9,600
$1,600
$4,700

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