Author Question: Jem's Jewelers reported the following items on its financial statements. Determine the amount of net ... (Read 72 times)

abern · **on:** Jul 5, 2018

Jem's Jewelers reported the following items on its financial statements. Determine the amount of net income. Then calculate the ending balance for retained earnings.

Sales 250,000
Cost of goods sold 57,500
Operating expenses 25,000
Net income ??
Dividends 4,000
Beginning retained earnings 55,500

Question 2

The section of Sarbanes Oxley that requires a company's CEO and CFO to certify quarterly and annual reports is:
a. Title I Public Company Accounting Oversight Board
b. Title II Auditor Independence
c. Title III Corporate Responsibility
d. Title IV Enhanced Financial Disclosures

blazinlyss · **Reply #1 on:** Jul 5, 2018

Answer to Question 1

250,000 57,500 25,000 = 167,500 net income

Beginning retained earnings 55,500
Net income 167,500
Dividends (4,000)
Ending retained earnings 219,000

Answer to Question 2

C