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
(c) The amount of liabilities at the end of the year is?
$38,300
$33,700
$36,000
$39,300