The December 31, 2011, balance sheet for Classic Company showed total stockholders' equity of $82,500. Total stockholders' equity increased by $53,400 between December 31, 2011, and December 31, 2012. During 2012 Classic Company acquired $13,000 cash from the issue of common stock. Classic Company paid an $8,000 cash dividend to the stockholders during 2012. Required Determine the amount of net income or loss Classic reported on its 2012 income statement. (Hint: Remember that stock issues, net income, and dividends all change total stockholders' equity.)
The December 31, 2011, balance sheet for Classic Company showed total stockholders' equity of $82,500. Total stockholders' equity increased by $53,400 between December 31, 2011, and December 31, 2012. During 2012 Classic Company acquired $13,000 cash from the issue of common stock. Classic Company paid an $8,000 cash dividend to the stockholders during 2012. Required Determine the amount of net income or loss Classic reported on its 2012 income statement. (Hint: Remember that stock issues, net income, and dividends all change total stockholders' equity.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Exercise 1-9A Missing information for determining net income
The December 31, 2011, balance sheet for Classic Company showed total stockholders' equity of
$82,500. Total stockholders' equity increased by $53,400 between December 31, 2011, and
December 31, 2012. During 2012 Classic Company acquired $13,000 cash from the issue of
common stock. Classic Company paid an $8,000 cash dividend to the stockholders during 2012.
Required
Determine the amount of net income or loss Classic reported on its 2012 income statement. (Hint:
Remember that stock issues, net income, and dividends all change total stockholders' equity.)
322010 1. 31-32
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