Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 14

For the following questions, circle the best response.

The Retained Earnings balance of Jayhawk Company at December 31, 2010, was $23,000. The December 31, 2011, balance of Retained Earnings was $31,000. Dividends of $3,000 were paid during 2011. The only other change in the Retained Earnings account was due to net income. The net income of Jayhawk Company during 2011 was

a. $5,000.

b. $8,000.

c. $11,000.

d. $14,000.