The following information was drawn from the accounting records of Wyckoff Company as of December...
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Accounting
The following information was drawn from the accounting records of Wyckoff Company as of December 31, Year 2, before the temporary accounts had been closed. The Cash balance was $5,120, and Notes Payable amounted to $5,000. The company had revenues of $3,990 and expenses of $2,870. The companys Land account had a $5,000 balance. Dividends amounted to $300. The balance of the Common Stock account was $800.
Identify which accounts would be classified as permanent and which accounts would be classified as temporary. Classification Account Cash Notes Payable Revenues Expenses Land Dividends Common Stock Retained Earnings Assuming that Wyckoff's beginning balance (as of January 1, Year 2) in the Retained Earnings account was $3,500, determine its balance after the temporary accounts were closed at the end of Year 2. What amount of net income would Wyckoff Company report on its Year 2 income statement? b. Ending retained earnings c. Net income
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