The following accounts were taken from Happy Company's balance sheets for 2026: Cash Land Notes payable Retained earnings Supplies Accounts payable Equipment Patent Accounts receivable Common stock Mortgage payable Copyright Inventory Rent expense Income tax expense Net income January 1 $20,000 $57,000 .... $36,000 $33,000 $11,000 $42,000 $28,000 $18,000 $56,000 $83,000 $77,000 $32,000 $49,000 December 31 $17,000 ? Happy Company's income statement for 2026 appears below: Sales revenue $236,000 Cost of goods sold Salaries expense $48,000 $51,000 $19,000 $23,000 $36,000 $ 58,000 $ 33,000 $ 21,000 $43,000 $97,000 $81,000 $32,000 $65,000 The following additional information is available: 1. Dividends declared by Happy Company during 2026 were equal to 28% of the net income for 2026. 2. Total intangible assets at December 31, 2026 were equal to $81,000. Calculate Happy Company's net income for 2026.
The following accounts were taken from Happy Company's balance sheets for 2026: Cash Land Notes payable Retained earnings Supplies Accounts payable Equipment Patent Accounts receivable Common stock Mortgage payable Copyright Inventory Rent expense Income tax expense Net income January 1 $20,000 $57,000 .... $36,000 $33,000 $11,000 $42,000 $28,000 $18,000 $56,000 $83,000 $77,000 $32,000 $49,000 December 31 $17,000 ? Happy Company's income statement for 2026 appears below: Sales revenue $236,000 Cost of goods sold Salaries expense $48,000 $51,000 $19,000 $23,000 $36,000 $ 58,000 $ 33,000 $ 21,000 $43,000 $97,000 $81,000 $32,000 $65,000 The following additional information is available: 1. Dividends declared by Happy Company during 2026 were equal to 28% of the net income for 2026. 2. Total intangible assets at December 31, 2026 were equal to $81,000. Calculate Happy Company's net income for 2026.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following accounts were taken from Happy Company's
balance sheets for 2026:
Cash
Land
Notes payable
Retained earnings
Supplies
Accounts payable
Equipment
Patent
Accounts receivable
Common stock
Mortgage payable
Copyright
Inventory
Rent expense
Income tax expense
Net income
January 1
$20,000
$57,000
....
$36,000
$33,000
$11,000
$42,000
$28,000
$18,000
$56,000
$83,000
$77,000
$32,000
$49,000
December 31
$17,000
Happy Company's income statement for 2026 appears below:
Sales revenue
$236,000
Cost of goods sold
Salaries expense
$48,000
$51,000
$19,000
$23,000
$36,000
$ 58,000
$ 33,000
$ 21,000
$43,000
$97,000
$81,000
$32,000
$65,000
The following additional information is available:
1. Dividends declared by Happy Company during 2026
were equal to 28% of the net income for 2026.
2. Total intangible assets at December 31, 2026
were equal to $81,000.
Calculate Happy Company's net income for 2026.
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