Presented below is selected information pertaining to Pineapple Enterprises Ltd. for last year: Assets January 1 $240,000 Assets December 31 $320,000 Liabilities January 1 $120, 000 Common shares December 31 60,000 Retained earnings December 31 $20,000 Common shares issued during the year 2,000 Dividends declared during the year 32,000 Required Calculate the net income for last year. Assets January 1 $240,000 Assets December 31 $320,000 Liabilities January 1 $120, 000 Common shares December 31 60,000 Retained earnings December 31 $20,000 Common shares issued during the year 2,000 Dividends declared during the year 32,000 Solution Assets January 1 240000 Less Liabilities January 1 120000 Common stockholders equity January 1 120000 less Common stock January 1 ( 60000-2000) 58000 Retained earnings January 1 62000 Retained earnings December 31 20000 Add Dividend declared 32000 52000 less Retained earnings January 1 62000 Net income -10000.

1. Presented below is selected information pertaining to Pineapple Enterprises Ltd. for last year:
Assets January 1
$240,000
Assets December 31
$320,000
Liabilities January 1
$120, 000
Common shares December 31
60,000
Retained earnings December 31
$20,000
Common shares issued during the year
2,000
Dividends declared during the year
32,000
Required
Calculate the net income for last year.
Assets January 1
$240,000
Assets December 31
$320,000
Liabilities January 1
$120, 000
Common shares December 31
60,000
Retained earnings December 31
$20,000
Common shares issued during the year
2,000
Dividends declared during the year
32,000
Solution
Assets January 1 240000 Less Liabilities January 1 120000 Common stockholders

2. equity January 1 120000 less Common stock January 1 ( 60000-2000) 58000 Retained
earnings January 1 62000 Retained earnings December 31 20000 Add Dividend declared
32000 52000 less Retained earnings January 1 62000 Net income -10000