Question: Below are the changes in account balances, except for retained earnings, for Desert Dorm Ltd., for the 2020 fiscal year: Required: Calculate the net income

Below are the changes in account balances, except for retained earnings, for Desert Dorm Ltd., for the 2020 fiscal year: Accounts payable Accounts receivable (net) Bonds payable Cash Account increase (decrease) 69

Required: Calculate the net income for 2020, assuming there were no entries in the retained earnings account except for net income and a dividend declaration of $44,000, which was paid in 2020. (Hint: using the accounting equation A = L+ E to help solve this question)

Accounts payable Accounts receivable (net) Bonds payable Cash Account increase (decrease) 69 (23,400) 15,800 46,500 41,670 Common shares 87,000 Contributed surplus 18,600 Inventory 218,400 Investments - FVNI (46,500) Intangible assets - patents 14,000 Unearned revenue 45,200 Retained earnings ??

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