David's Skates had the following balances on its balance sheet on December 31, 2020. In addition, David paid dividends of $5,000 and the retained earnings balance at the beginning of 2020 is $135,000. What is David's net income for the year 2020? Debit Credit Cash 125,000 Accounts receivable 40,000 Inventory 350,000 Fixed Assets 50,000 Accounts payable 80,000 Notes payable – due 2023 250,000 Common stock 10,000 Retained earnings – 12/31/2020 225,000 Total 565,000 565,0
David's Skates had the following balances on its balance sheet on December 31, 2020. In addition, David paid dividends of $5,000 and the retained earnings balance at the beginning of 2020 is $135,000. What is David's net income for the year 2020? Debit Credit Cash 125,000 Accounts receivable 40,000 Inventory 350,000 Fixed Assets 50,000 Accounts payable 80,000 Notes payable – due 2023 250,000 Common stock 10,000 Retained earnings – 12/31/2020 225,000 Total 565,000 565,0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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David's Skates had the following balances on its
| Debit | Credit | |
| Cash | 125,000 | |
| 40,000 | ||
| Inventory | 350,000 | |
| Fixed Assets | 50,000 | |
| Accounts payable | 80,000 | |
| Notes payable – due 2023 | 250,000 | |
| Common stock | 10,000 | |
| Retained earnings – 12/31/2020 | 225,000 | |
| Total | 565,000 | 565,0 |
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