Jerry's Butcher Shop Had the Following Assets and Liabilities at the Beginning

question 246

Essay

Jerry's Butcher Shop had the following assets and liabilities at the beginning and end of the current year:
$$\begin{array} { l c c } & \text { Assets } & { \text { Liabilities } } \\\text { Beginning of the year } & \$ 114,000 & \$ 6 8 , 0 0 0\\\text { End of the year } & 135,000 & 73,000\end{array}$$
If stockholders invested an additional $12,000 in the business during the year in exchange for common stock,but no dividends were paid during the year,what was the amount of net income earned by Jerry's Butcher Shop?

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Definitions:

Hospital Insurance

A type of insurance designed to cover medical and surgical expenses incurred by the insured within a hospital setting.

OASDI

Old-Age, Survivors, and Disability Insurance, a comprehensive federal benefits program that provides retirement, disability, and survivors benefits.

Hospital Insurance

Coverage that pays for hospital expenses incurred by the insured due to illness or injury.

OASDI

Old-Age, Survivors, and Disability Insurance, a comprehensive federal benefits program that provides benefits to retirees and disabled people.