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Business
Accounting
business had the following amounts of assets and liabilities at the eginning and end of a recent year: eginning of the year and of the year Assets $ 75,000 120,000 Liabilities $ 30,000 46,000 etermine the net income or loss incurred by the business during the ye nder each of the following four unrelated assumptions. 1. There were no additional investments in the company by the stockholders during the year and no cash dividends were declared. 2. There were no additional investments in the company by the stockholders during the year and $21,000 of dividends were declar 3. Common stock was issued to investors during the year in exchange $32,500 cash, but no dividends were declared. 4. Common stock was issued to investors during the year in exchange- $25,000 cash and $21,000 cash dividends were declared.

business had the following amounts of assets and liabilities at the eginning and end of a recent year: eginning of the year and of the year Assets $ 75,000 120,000 Liabilities $ 30,000 46,000 etermine the net income or loss incurred by the business during the ye nder each of the following four unrelated assumptions. 1. There were no additional investments in the company by the stockholders during the year and no cash dividends were declared. 2. There were no additional investments in the company by the stockholders during the year and $21,000 of dividends were declar 3. Common stock was issued to investors during the year in exchange $32,500 cash, but no dividends were declared. 4. Common stock was issued to investors during the year in exchange- $25,000 cash and $21,000 cash dividends were declared.

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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purchased? A business had the following amounts of assets and liabilities at the beginning and end of a recent year: Beginning of the year End of the year Assets $ 75,000 120,000 Liabilities $ 30,000 46,000 Determine the net income or loss incurred by the business during the year under each of the following four unrelated assumptions. 1. There were no additional investments in the company by the stockholders during the year and no cash dividends were declared. 2. There were no additional investments in the company by the stockholders during the year and $21,000 of dividends were declared 3. Common stock was issued to investors during the year in exchange f $32,500 cash, but no dividends were declared. Ch 2 More Practice.docx 4. Common stock was issued to investors during the year in exchange fe $25,000 cash and $21,000 cash dividends were declared.
Transcribed Image Text:purchased? A business had the following amounts of assets and liabilities at the beginning and end of a recent year: Beginning of the year End of the year Assets $ 75,000 120,000 Liabilities $ 30,000 46,000 Determine the net income or loss incurred by the business during the year under each of the following four unrelated assumptions. 1. There were no additional investments in the company by the stockholders during the year and no cash dividends were declared. 2. There were no additional investments in the company by the stockholders during the year and $21,000 of dividends were declared 3. Common stock was issued to investors during the year in exchange f $32,500 cash, but no dividends were declared. Ch 2 More Practice.docx 4. Common stock was issued to investors during the year in exchange fe $25,000 cash and $21,000 cash dividends were declared.
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The accounting equation states that assets equals to sum of liabilities and shareholder's equity. The equity increases with income and additional investment and decreases with dividend and losses. 

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