Chapter 1, Problem 65BPSB

Problem 1-65B Relationships Among Financial Statements

Leno Corporation reported the following amounts for assets and liabilities at the beginning and end of a recent year.

Required:

Calculate Leno’s net income or net loss for the year in each of the following independent situations:

1. Leno declared no dividends, and its common stock remained unchanged.
2. Leno declared no dividends and issued additional common stock for $15,000 cash.
3. Leno declared dividends totaling $10,000 and its common slack remained unchanged.
4. Leno declared dividends totaling $12,000 and issued additional common stock for $20,000.