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At the beginning of the current fiscal year, the balance sheet of Cummings Company showed liabilities of $432,000. During the year, liabilities decreased by $78,000, assets increased by $151,000, and paid-in capital increased by $26,000 to $388,000. Dividends declared and paid during the year were $130,000. At the end of the year, stockholders' equity totaled $758,000. Required: Calculate net income or loss for the year. Note: Amounts to be deducted should be indicated with a minus sign. Beginning Changes Changes Ending Assets 151,000 = Liabilities $ 432,000+ (78,000) + Stockholders' Equity RE PIC + 26,000 + $ 388,000 + $758,000 SE

At the beginning of the current fiscal year, the balance sheet of Cummings Company showed liabilities of $432,000. During the year, liabilities decreased by $78,000, assets increased by $151,000, and paid-in capital increased by $26,000 to $388,000. Dividends declared and paid during the year were $130,000. At the end of the year, stockholders' equity totaled $758,000. Required: Calculate net income or loss for the year. Note: Amounts to be deducted should be indicated with a minus sign. Beginning Changes Changes Ending Assets 151,000 = Liabilities $ 432,000+ (78,000) + Stockholders' Equity RE PIC + 26,000 + $ 388,000 + $758,000 SE

FINANCIAL ACCOUNTING
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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Rahul bhaliya 

At the beginning of the current fiscal year, the balance sheet of Cummings Company showed liabilities of $432,000. During the year, liabilities decreased by $78,000, assets increased by $151,000, and paid-in capital increased by $26,000 to $388,000. Dividends declared and paid during the year were $130,000. At the end of the year, stockholders' equity totaled $758,000. Required: Calculate net income or loss for the year. Note: Amounts to be deducted should be indicated with a minus sign. Beginning Changes Changes Ending Assets = 151,000 = Liabilities + $ 432,000 + (78,000) + + Stockholders' Equity RE PIC + + 26,000+ $ 388,000 + $758,000 SE
Transcribed Image Text:At the beginning of the current fiscal year, the balance sheet of Cummings Company showed liabilities of $432,000. During the year, liabilities decreased by $78,000, assets increased by $151,000, and paid-in capital increased by $26,000 to $388,000. Dividends declared and paid during the year were $130,000. At the end of the year, stockholders' equity totaled $758,000. Required: Calculate net income or loss for the year. Note: Amounts to be deducted should be indicated with a minus sign. Beginning Changes Changes Ending Assets = 151,000 = Liabilities + $ 432,000 + (78,000) + + Stockholders' Equity RE PIC + + 26,000+ $ 388,000 + $758,000 SE
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