During 2011, Bascom Bakery Paid Out $33,525 of Common Dividends

question 33

Multiple Choice

During 2011, Bascom Bakery paid out $33,525 of common dividends. It ended the year with $197,500 of retained earnings versus the prior year's retained earnings of $159,600. How much net income did the firm earn during the year?

• A) $71,425
• B) $74,996
• C) $78,746
• D) $82,683
• E) $86,818

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Definitions:

Overtime Wages

Additional pay granted to employees for hours worked beyond their standard scheduled hours.

Expensed

Recorded as an expense in the financial statements in the period in which it is incurred.

Statement

A formal record or document detailing financial activities or conditions, such as an income statement or balance sheet.

Adjusting Entries

Journal entries made at the end of an accounting period to update accounts for accuracies in preparation for financial statement generation.