ABC Inc. was incorporated two years ago by issuing 5,000 shares of common stock at $400 each and borrowing $240,000 from a bank on a long-term note. Last year, ABC reported net income of $40,000 and paid a cash dividend of $1,800. Last year, the company also borrowed an additional $320,000 from the bank. What was the total assets on ABC's balance sheet at the end of the year last year?
ABC Inc. was incorporated two years ago by issuing 5,000 shares of common stock at $400 each and borrowing $240,000 from a bank on a long-term note. Last year, ABC reported net income of $40,000 and paid a cash dividend of $1,800. Last year, the company also borrowed an additional $320,000 from the bank. What was the total assets on ABC's balance sheet at the end of the year last year?
Chapter19: Corporations: Distributions Not In Complete Liquidation
Section: Chapter Questions
Problem 1BCRQ
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Transcribed Image Text:ABC Inc. was incorporated two years ago by
issuing 5,000 shares of common stock at $400
each and borrowing $240,000 from a bank on a
long-term note. Last year, ABC reported net
income of $40,000 and paid a cash dividend of
$1,800. Last year, the company also borrowed
an additional $320,000 from the bank. What was
the total assets on ABC's balance sheet at the
end of the year last year?
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