At the beginning of the current fiscal year, the balance sheet for Davis Co. showed liabilities...

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At the beginning of the current fiscal year, the balance sheet for Davis Co. showed liabilities of $416,000. During the year,

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Answer 1

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Beginning Assets=Beginning Liabilities+Beginning Paid In Capital +Beginning Retained Earning
Beginning Assets=416000+39000+Beginning Retained Earning
Beginning Asset-Beginning Retained Earnings	455000
Beginning Assets=X
Beginning Retained Earnings =Y
X+Y=455000
Ending Asset=X+84500
Ending Liabilities =416000-23400	392600
Ending Paid in Capital	249600
Ending Stock holders Equity	557700
Ending Retained Earnings =Stock holders Equity -Paid in Capital
Ending Retained Earnings =557700-249600=	308100
Ending Assets=Ending Liabilities+Ending Stockholders Equity
X+84500=392600+557700=	950300
X=950300-84500=	865800
X=Beginning Assets=	865800
Y=Beginning Retained Earnings =X-455000=	410800
Less: Dividend	32500
Add: Net Income =Z
Y-32500+Z=Ending Retained Earning =	308100
430800-32500+Z=308100
Net Income =Z=308100+32500--430800=	-70200

	ASSETS	=	Liabilities	+	PIC	+	Retained Earnings
Beginning	$865,800		$416,000		$39,000		$410,800
Changes	$84,500		($23,400)		$210,600		-$102,700
Ending	$950,300		$392,600		$249,600		$308,100	(410800-32500-70200)
								($557700 Total SE

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