The correct option. Given information: Number of shares outstanding in year 10 is 100,000. Net income in the year 10 is $350,000. Net income in the year 11 is $410,000.

Question

CODE 14 On August 1, 2010, Cheryl Newsome established Titus Realty, which completed the following transactions during the month: a. Cheryl Newsome transferred cash from a personal bank account to an account to be used for the business in exchange for capital stock, $25,000. b. Paid rent on office and equipment for the month, $2,750. c. Purchased supplies on account, $950. d. Paid creditor on account, $400. c. Earned sales commissions, receiving cash, $18,100. f. Paid automobile expenses (including rental charge) for month, $1,000, and miscel- laneous expenses, $600. g. Paid office salaries, $2,150. h. Determined that the cost of supplies used was $575. i. Paid dividends, $2,000. REQUIREMENTS: 1. Determine increase - decrease of each account and new balance 2. Prepare 3 F.S: Income statement; Retained Earnings Statement; Balance Sheet Scanned with CamScanner

Answer 1

Question

Chapter 20, Problem 20.2MC

To determine

To identify: The correct option.

Given information:

Number of shares outstanding in year 10 is 100,000.

Net income in the year 10 is $350,000.

Net income in the year 11 is $410,000.

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