$\mathrm{<br>[}$At December $31,2020],[$Assets$,$Liabilities$],[$Cash$,$$$,52,450,$Accounts payable,$$,10,700],[$Property and equipment,,$68,250,$Note payable,,$6,900],[$Accounts receivable][    $32,750,,,],[,,,,],[,,,,],[,,,,],[,,,,],[,,$Total liabilities,,$17,600],[,,$Shareholders' equity$],[,,$Retained earnings,,$15,800],[,,$Contributed capital,,$120,050],[,,,,],[,,$Total shareholders' equity,,$135,850],[$Total assets,$$,153,450,$Total liabilities & shareholders' equity,$$,153,450]]$

Using the retained earnings equation and an opening balance of $$0,$ work backward to compute the amount of net income for the year that ended December $31,2020.$

Net income

 

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Cash Property and equipment Accounts receivable READER DIRECT Balance Sheet At December 31, 2020 Assets Liabilities $ 52,450 Accounts payable $ 10,700 68,250 Note payable 6,900 32,750 Total liabilities 17,600 Shareholders' equity Retained earnings Contributed capital 15,800 120,050 Total shareholders' equity 135,850 Total assets $ 153,450 Total liabilities & shareholders' equity $ 153,450 2. Using the retained earnings equation and an opening balance of $0, work backward to compute the amount of net income for the year that ended December 31, 2020. Net income Cash Property and equipment Accounts receivable READER DIRECT Balance Sheet At December 31, 2020 Assets Liabilities $ 52,450 Accounts payable $ 10,700 68,250 Note payable 6,900 32,750 Total liabilities 17,600 Shareholders' equity Retained earnings Contributed capital 15,800 120,050 Total shareholders' equity 135,850 Total assets $ 153,450 Total liabilities & shareholders' equity $ 153,450 2. Using the retained earnings equation and an opening balance of $0, work backward to compute the amount of net income for the year that ended December 31, 2020. Net income

Answer rating: 100% (QA)

To calculate the net income for the year ended December 31 2020 we can use the retained earning... View the full answer