A corporation had the following assets and liabilities at the beginning and end of this year. Assets Beginning of the year End of the year $109,000 152, 5ee Liabilities $ 46,728 61,763 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 $1,400 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 $1,400 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 equlty should be Indicated with a minus sign.) X Answer is complete but not entirely correct. a. b. C. d. Beginning of the year-Equity 62,272 62,272 62,272 82,272 Owner investments 45,000 O 35,000 O Dividend 16,800 X 16,800 X Net income (loss) 28,465 O 45,265 O (16,535) O 10,265 End of the year-Equity 90,737 Os 90,737 IS 90,737 90,737
A corporation had the following assets and liabilities at the beginning and end of this year. Assets Beginning of the year End of the year $109,000 152, 5ee Liabilities $ 46,728 61,763 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 $1,400 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 $1,400 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 equlty should be Indicated with a minus sign.) X Answer is complete but not entirely correct. a. b. C. d. Beginning of the year-Equity 62,272 62,272 62,272 82,272 Owner investments 45,000 O 35,000 O Dividend 16,800 X 16,800 X Net income (loss) 28,465 O 45,265 O (16,535) O 10,265 End of the year-Equity 90,737 Os 90,737 IS 90,737 90,737
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Stockholders' equity: Stockholders' equity means the net assets available to shareholders after deducting all the liabilities from the total assets. Stockholders' equity include common stock, paid-in capital, preferred stock, retained earnings and treasury stock.
Equity = Total assets - Total liabilities
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