e what would happen to the equity of kicking horse oil Ltd. after each of the following independent transactions: e) The company invested $1,250,000 in oil exploration rights f) The company paid $2,000 interest on the bank loan g) The oil exploration rights were revalued at $5,000,000 h) In year 1, the company reported a loss of $5,000 i) In year 2, the company reported a net income of $200,000 j) At the end of year 2, the company paid dividend of $10,000 to the pr
e what would happen to the equity of kicking horse oil Ltd. after each of the following independent transactions: e) The company invested $1,250,000 in oil exploration rights f) The company paid $2,000 interest on the bank loan g) The oil exploration rights were revalued at $5,000,000 h) In year 1, the company reported a loss of $5,000 i) In year 2, the company reported a net income of $200,000 j) At the end of year 2, the company paid dividend of $10,000 to the pr
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Solve part e, f, g, h, i, and part j
State what would happen to the equity of kicking horse oil Ltd. after each of the following independent transactions:
e) The company invested $1,250,000 in oil exploration rights
f) The company paid $2,000 interest on the bank loan
g) The oil exploration rights were revalued at $5,000,000
h) In year 1, the company reported a loss of $5,000
i) In year 2, the company reported a net income of $200,000
j) At the end of year 2, the company paid dividend of $10,000 to the preference shareholders and $25,000 to the common shareholders
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