Single-step Income Statement Video Lessons

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Problem: Johnny’s Car Repair Shop started the year with total assets of $60,000 and total liabilities of $40,000. During the year the business recorded $100,000 in car repair revenues, $55,000 in expenses, and dividends of $10,000. The net income reported by Johnny’s Car Repair Shop for the year was a. $35,000. b. $45,000. c. $20,000. d. $90,000. e. none of the options listed

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Problem Details

Johnny’s Car Repair Shop started the year with total assets of $60,000 and total liabilities of $40,000. During the year the business recorded $100,000 in car repair revenues, $55,000 in expenses, and dividends of $10,000.

The net income reported by Johnny’s Car Repair Shop for the year was

a. $35,000.

b. $45,000.

c. $20,000.

d. $90,000.

e. none of the options listed

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What scientific concept do you need to know in order to solve this problem?

Our tutors have indicated that to solve this problem you will need to apply the Single-step Income Statement concept. You can view video lessons to learn Single-step Income Statement. Or if you need more Single-step Income Statement practice, you can also practice Single-step Income Statement practice problems.

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Our tutors rated the difficulty ofJohnny’s Car Repair Shop started the year with total assets ...as medium difficulty.

What professor is this problem relevant for?

Based on our data, we think this problem is relevant for Professor Reinking's class at UCF.