I need correct option general accounting Allen Marks is the sole stockholder and operator of Great Marks Company.As at December 31, 2013, Great Marks Company has assets of $916,956 andliabilities of $269,921. During 2014, Allen Marks purchased an additional$28,231 of capital stock and received $25,581 in cash dividends from thebusiness.What is the amount of net income of Great Marks Company during 2014,assuming that as of December 31, 2014, assets were $984,233, and liabilitieswere $232,804?Select the correct answer.a. $37,117b. $25,581c. $101,744d. $67,277

Step 1: Define Net incomeNet income is measured as sales less the cost of goods sold, selling,…

Answered: Allen Marks is the sole stockholder and…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 18P

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General Accounting
For 2018, Sabil Corporation earned net income of $480,000 and paid dividends of $18,000. At January 1, 2018, Sabil had $200,000 of $10 par value common stock outstanding and $1,500,000 of retained earnings.On January 1, 2018, Phyit Corporation bought outstanding common stock of Sabil paying $200,000. All payments made by Phyit in excess of book value were attributable to equipment, which is depreciated over ten years on a straight-line basis. Prepare Phyit’s general journal entry for the acquisition of common stock of Sabil, the recognition of dividend income, and/or net income participation in Sabil under the following assumptions:1. Phyit purchased 10% of outstanding common stock.2. Phyit purchased 20% of outstanding common stock.
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At the beginning of its fiscal year on April 1, 2018, Extra Vienna Oil Corp, had a balance of $4,740.000 in its retained earnings account. The company generated its highest net income ever of $4,150,750, so it paid large dividends of $975,000 and $750,000 to its preferred and common shareholders, respectively. Required: Prepare the March 31, 2019 (fiscal year end) retained earnings statement for Extra Vienna Oil Corp.
The following are preliminary financial statements for Angel Co. and Lion Co. for the year ending December 31, 2018 prior to Angel’s acquisition of Lion. Angel Co. LionCo. Sales $360,000 $228,000 Expenses (240,000) (132,000) Net income $120,000 $ 96,000 Retained earnings, January 1, 2018 $480,000 $252,000 Net income (from above) 120,000 96,000 Dividends declared (36,000) -0- Retained earnings, December 31, 2018 $564,000 $348,000 Current assets $360,000 $120,000 Land 120,000 108,000 Building (net) 480,000 336,000 Total assets $960,000 $564,000 Liabilities $108,000 $132,000 Common stock 192,000 72,000 Additional paid-in capital 96,000 12,000 Retained earnings, December 31, 2018 564,000 348,000 Total liabilities and stockholders’ equity $960,000 564,000 On December 31, 2018 (subsequent to the preceding statements), Angel exchanged 10,000 shares of its $10 par value common stock for all of the outstanding shares of Lion. Angel's stock on that date has a fair value of $60 per share. Angel…
REQUIRED: In its statement of financial position, how much should be reported by WHITE as its total assets?
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