At the beginning of the current fiscal year, the balance sheet of Cummings Company showed liabilities of $434,000. During the year, liabilities decreased by $75,000, assets increased by $155,000, and paid-in capital increased by $22,000 to $382,000. Dividends declared and paid during the year were $129,000. At the end of the year, stockholders' equity totaled $754,000.
At the beginning of the current fiscal year, the balance sheet of Cummings Company showed liabilities of $434,000. During the year, liabilities decreased by $75,000, assets increased by $155,000, and paid-in capital increased by $22,000 to $382,000. Dividends declared and paid during the year were $129,000. At the end of the year, stockholders' equity totaled $754,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

Transcribed Image Text:At the beginning of the current fiscal year, the balance sheet of Cummings Company showed liabilities of $434,000. During the year,
liabilities decreased by $75,000, assets increased by $155,000, and paid-in capital increased by $22,000 to $382,000. Dividends
declared and paid during the year were $129,000. At the end of the year, stockholders' equity totaled $754,000.
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
||||
155,000 =
Liabilities +
$ 434,000 +
(75,000) +
Stockholders' Equity
RE
PIC
--
+
22,000 +
+ $ 382,000 +
$754,000 SE
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