E 1 Presented below are changes in all the account balances of Jackson Furniture Co. during the current year, except for retained earnings.
|
Increase |
Increase |
||
|
Cash |
$69,000 |
Accounts Payable |
($51,000) |
|
Accounts Receivable (net) |
45,000 |
Bonds Payable |
82,000 |
|
Inventory |
127,000 |
Common Stock |
125,000 |
|
Investments |
47,000 |
Paid in Capital in Excess of Par–Common Stock |
13,000 |
Instructions
Compute the net income for the current year, assuming that there were no entries in the Retained Earnings account except for net income and a dividend declaration of $24,000 which was paid in the current year.