At the beginning of the current fiscal year, the balance sheet for Davis Company showed liabilities of $480,000. During the year, liabilities decreased by $27,000, assets increased by $97,500, and paid-in capital increased from $45,000 to $288,000. Dividends declared and paid during the year were $37,500. At the end of the year, stockholders' equity totaled $643,500. Required: a. Calculate net income (or loss) for the year. Indicate the financial statement effect. Complete this question by entering your answers in the tabs below. Required A1 Required A2 Calculate net income (or loss) for the year. Note: Enter decreases with a minus sign to indicate a negative financial statement effect. Assets Beginning: $ 466,200 = $ 480,000+ $ Changes: 97,500 = (27,000) + Changes: Ending: Liabilities $ 511,700 $ 453,000 + Stockholders' Equity PIC RE 45,000 + $318,000 243,000+ (118,500) $ 288,000 $ 199,500 ($643,500 total SE) < Required A1 Required A2 >

At the beginning of the current fiscal year, the balance sheet for Davis Company showed liabilities of $480,000. During the year, liabilities decreased by $27,000, assets increased by $97,500, and paid-in capital increased from $45,000 to $288,000. Dividends declared and paid during the year were $37,500. At the end of the year, stockholders' equity totaled $643,500. Required: a. Calculate net income (or loss) for the year. Indicate the financial statement effect. Complete this question by entering your answers in the tabs below. Required A1 Required A2 Calculate net income (or loss) for the year. Note: Enter decreases with a minus sign to indicate a negative financial statement effect. Assets Beginning: $ 466,200 = $ 480,000+ $ Changes: 97,500 = (27,000) + Changes: Ending: Liabilities $ 511,700 $ 453,000 + Stockholders' Equity PIC RE 45,000 + $318,000 243,000+ (118,500) $ 288,000 $ 199,500 ($643,500 total SE) < Required A1 Required A2 >

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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