Question

the adjusted trial balance of amana corporation at december 31 shows that sales revenue for the year was $513,000 and other revenue was $37,000. cost of goods sold for that same period was $256,000, while other expenses totaled $185,000. the corporation declared and paid dividends of $12,000 during the year. the balance of retained earnings before closing entries was $457,000.

close out the dividends account.

journal entry

1. what was net income for the year?

select the formula and enter the amounts to determine net income for the year.

sales revenue - total expenses = net income

513000 - 441000 = 72000

Explanation:

Step1: Calculate total expenses

Total expenses = Cost of goods sold + Other expenses
Total expenses = $256,000 + $185,000 = $441,000

Step2: Calculate net income

Net income = Sales revenue + Other revenue - Total expenses
Net income = $513,000 + $37,000 - $441,000
Net income = $550,000 - $441,000 = $109,000

Answer:

$109,000