Answer to Question #310290 in Accounting for Xyz

Question

Q1.A Bosh Company’s total assets are $155,000 and its total liabilities are $85,000. What is the

amount of the Bosh company’s retained earnings if its capital stock amounts $50,000? 3

Q2. Wiley Company had total revenue of $300,000 for a recent month. During the month the

company incurred operating expenses of $205,000 and purchased land for $55,000. Compute the

amount of Wiley’s net income for the month.

Answer 1

1.) Retained earnings=Assets-Liabilities-Capital

RE=$155,000-$85,000-$50,000=$20,000

Retained earnings=$20,000

2.) Net income=Revenue-Expenses

NI=$300,000-$205,000=$95,000