At the Beginning of the Year, Paid-In Capital Was $164

question 53

Multiple Choice

At the beginning of the year, paid-in capital was $164 and retained earnings was $94.During the year, the stockholders invested $48 and dividends of $12 were declared and paid.Retained earnings at the end of the year were $104. Net income for the year was:

• A)$20
• B)$22
• C)$30
• D)$40

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Definitions:

Ledger

A book or other collection of financial accounts of a particular type, typically used in accounting to record transactions.

Charges

Fees or prices asked for goods or services.

Payments

The act of providing money or its equivalent in exchange for goods, services, or to settle debts.

Balance Due

The amount of money owed on an invoice or bill that remains unpaid and is required to settle the account.