Baltimore Company reports total assets and total liabilities of $251,000 and $110,000, respectively, at the conclusion, of its first year of business. The company earned $81,500 during the first year and distributed $27,000 to shareholders as dividends. How much did shareholders initially invest in the business?

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 21EA: James Corporation earned net income of $90,000 this year. The company began the year with 600 shares...
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Baltimore Company reports total assets and total liabilities of
$251,000 and $110,000, respectively, at the conclusion, of its first
year of business. The company earned $81,500 during the first year
and distributed $27,000 to shareholders as dividends.
How much did shareholders initially invest in the business?
Transcribed Image Text:Baltimore Company reports total assets and total liabilities of $251,000 and $110,000, respectively, at the conclusion, of its first year of business. The company earned $81,500 during the first year and distributed $27,000 to shareholders as dividends. How much did shareholders initially invest in the business?
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