On January 1, 2013, Baird Company had beginning balances as follows: Assets = $2,250
Liabilities = $620
Common Stock = $800
During 2013, Baird paid dividends to its stockholders of $900. Given that ending retained earnings was $600, what was Baird's net income for the 2013 accounting period?
A)$770
B)$830
C)$1,250
D)$500

Question

Quizplus · Accepted Answer

On January 1: Assets = Liabilities + Common Stock + Retained Earnings
$2,250 = $620 + $800 + Retained Earnings
Retained Earnings = $830
$830 + Net Income - $900 = $600
Net Income = $670

On January 1, 2013, Baird Company Had Beginning Balances as Follows