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Bennett Griffin and Chula Garza organized Cole Valley Book Store as a corporation; each contributed $71,700 cash to start the business and received 4,400 shares of common stock. The store completed its first year of operations on December 31, current year. On that date, the following financial items for the year were determined: December 31, current year, cash on hand and in the bank, $69,150; December 31, current year, amounts due from customers from sales of books, $44,500; unused portion of store and office equipment, $76,000; December 31, current year, amounts owed to publishers for books purchased, $13,800; one-year note payable to a local bank for $3,800. No dividends were declared or paid to the stockholders during the year. Required 1 Required 2 What was the amount of net income for the year Dividends = Ending Retained Earn Net Income Amount of net income < Req

Bennett Griffin and Chula Garza organized Cole Valley Book Store as a corporation; each contributed $71,700 cash to start the business and received 4,400 shares of common stock. The store completed its first year of operations on December 31, current year. On that date, the following financial items for the year were determined: December 31, current year, cash on hand and in the bank, $69,150; December 31, current year, amounts due from customers from sales of books, $44,500; unused portion of store and office equipment, $76,000; December 31, current year, amounts owed to publishers for books purchased, $13,800; one-year note payable to a local bank for $3,800. No dividends were declared or paid to the stockholders during the year. Required 1 Required 2 What was the amount of net income for the year Dividends = Ending Retained Earn Net Income Amount of net income < Req

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cannot figure out the net income

Bennett Griffin and Chula Garza organized Cole Valley Book Store as a corporation; each contributed $71,700 cash to start the business and received 4,400 shares of common stock. The store completed its first year of operations on December 31, current year. On that date, the following financial items for the year were determined: December 31, current year, cash on hand and in the bank, $69,150; December 31, current year, amounts due from customers from sales of books, $44,500; unused portion of store and office equipment, $76,000; December 31, current year, amounts owed to publishers for books purchased, $13,800; one-year note payable to a local bank for $3,800. No dividends were declared or paid to the stockholders during the year.
Transcribed Image Text:Bennett Griffin and Chula Garza organized Cole Valley Book Store as a corporation; each contributed $71,700 cash to start the business and received 4,400 shares of common stock. The store completed its first year of operations on December 31, current year. On that date, the following financial items for the year were determined: December 31, current year, cash on hand and in the bank, $69,150; December 31, current year, amounts due from customers from sales of books, $44,500; unused portion of store and office equipment, $76,000; December 31, current year, amounts owed to publishers for books purchased, $13,800; one-year note payable to a local bank for $3,800. No dividends were declared or paid to the stockholders during the year.
Required 1 Required 2 What was the amount of net income for the year Dividends = Ending Retained Earn Net Income Amount of net income < Req
Transcribed Image Text:Required 1 Required 2 What was the amount of net income for the year Dividends = Ending Retained Earn Net Income Amount of net income < Req
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