The following pre-closing accounts and balances were drawn from the records of Carolina Company on December 31, Year 1:

Cash $ 4,000 Accounts receivable $ 3,400

Dividends 2,000 Common stock 3,900

Land 3,200 Revenue 3,200

Accounts payable 1,800 Expense 2,200

Retained earnings 5,900

What is the amount of net income that will be reported on the Year 1 income statement?

	$200
	$2,200
	$1,000
	$3,200

Answer rating: 100% (QA)

Net income is the excess of revenue over the exp... View the full answer