Answer:
The amount of net income is $800
Explanation:
Net Income = Revenue -expenses
= $3,000 - $2,200
=$800
Cash dividend paid of $400 will not have impact in the income statement i.e in calculating net income, since this is not an expense, instead it is a distribution of profits to the owners of the company.
Dividend paid will reduce retained earning in the Statement of Retained Earnings.
Cash realized from the issuance of common stock will be credited to equity account and debited to cash account in the balance sheet.
Cash paid for the purchase of land will be debited to Non-current asset account and and credited to cash account in the balance sheet.
