A corporation had the following assets and liabilities at the beginning and end of this year. Assets Liabilities Beginning of the year End of the year $119,000 165,000 $51,015 66,825 a. Owner made no investments in the business, and no dividends were paid during the year. b. Owner made no investments in the business, but dividends were $550 cash per month. c. No dividends were paid during the year, but the owner did invest an additional $45,000 cash in exchange for common stock. d. Dividends were $550 cash per month, and the owner invested an additional $35,000 cash in exchange for common stock. Determine net income or net loss for the business during the year for each of the above separate cases: (Decreases in equity should be indicated with a minus sign.)
A corporation had the following assets and liabilities at the beginning and end of this year. Assets Liabilities Beginning of the year End of the year $119,000 165,000 $51,015 66,825 a. Owner made no investments in the business, and no dividends were paid during the year. b. Owner made no investments in the business, but dividends were $550 cash per month. c. No dividends were paid during the year, but the owner did invest an additional $45,000 cash in exchange for common stock. d. Dividends were $550 cash per month, and the owner invested an additional $35,000 cash in exchange for common stock. Determine net income or net loss for the business during the year for each of the above separate cases: (Decreases in equity should be indicated with a minus sign.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![A corporation had the following assets and liabilities at the beginning and end of this year.
Assets
Liabilities
Beginning of the year
End of the year
$119,000
165,000
$51,015
66,825
a. Owner made no investments in the business, and no dividends were paid during the year.
b. Owner made no investments in the business, but dividends were $550 cash per month.
c. No dividends were paid during the year, but the owner did invest an additional $45,000 cash in exchange for common stock.
d. Dividends were $550 cash per month, and the owner invested an additional $35,000 cash in exchange for common stock.
Determine net income or net loss for the business during the year for each of the above separate cases: (Decreases in equity should
be indicated with a minus sign.)
X Answer is complete but not entirely correct.
a.
b.
c.
d.
Beginning of the year-Equity
2$
67,985
2$
67,985
67,985
2$
67,985
Owner investments
45,000
35,000
Dividend
6,600 X
6,600
Net income (loss)
30,190
36,790 O
(14,810) O
(1,790) X
End of the year-Equity
98,175
2$
98,175
2$
98,175
98,175
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Transcribed Image Text:A corporation had the following assets and liabilities at the beginning and end of this year.
Assets
Liabilities
Beginning of the year
End of the year
$119,000
165,000
$51,015
66,825
a. Owner made no investments in the business, and no dividends were paid during the year.
b. Owner made no investments in the business, but dividends were $550 cash per month.
c. No dividends were paid during the year, but the owner did invest an additional $45,000 cash in exchange for common stock.
d. Dividends were $550 cash per month, and the owner invested an additional $35,000 cash in exchange for common stock.
Determine net income or net loss for the business during the year for each of the above separate cases: (Decreases in equity should
be indicated with a minus sign.)
X Answer is complete but not entirely correct.
a.
b.
c.
d.
Beginning of the year-Equity
2$
67,985
2$
67,985
67,985
2$
67,985
Owner investments
45,000
35,000
Dividend
6,600 X
6,600
Net income (loss)
30,190
36,790 O
(14,810) O
(1,790) X
End of the year-Equity
98,175
2$
98,175
2$
98,175
98,175
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