Several Amounts from Duggard Company at December 31, 2016 Are

question 37

Essay

Several amounts from Duggard Company at December 31, 2016 are listed below.Answer the questions. $$\begin{array} { l r l r } \text { Service revenue } & \$ 245,000 & \text { Salaries expense } & \$ 109,000 \\\text { Dividends declared and paid } & 15,000 & \text { Rent expense } & 36,000 \\\text { Buil dings } & 110,000 & \text { Land } & 100,000 \\\text { Accounts payable } & 40,000 & \text { Accounts receivable } & 28,000 \\\text { Capital stock } & 60,000 & \text { Retained earnings, Jan. 1, 2016 } & 40,000 \\\text { Utilities expense } & 19,000 & \text { Notes payable } & 30,000 \\\text { Income tax payable } & 4,000 & \text { Income tax expense } & 11,000\end{array}$$ ​ A) Calculate net income for 2016 .
B) How much is Duggard Company's retained earnings at the end of 2016 ?
C) What primary asset account is missing?

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Definitions:

Capital Contribution

The injection of assets by the owners or shareholders into a business for operational or investment purposes.

Distributes The Assets

The process of allocating a deceased person's property and assets according to their will or the law in cases of intestacy.

Firm's Existence

The legal status of a company as an entity that can exercise legal rights, fulfill obligations, and face liabilities independently from its owners.

Dissolve

The process of legally ending the existence of a corporation, partnership, or other formal business entity.