Question

Activity th - Using the expanded Accounting Equation Using the expanded accounting equation, calculate and enter the answers for each question. You will need to use the answers you calculate for beginning and ending equity to answer the rest of the questions 3) What is the equity at the end of the year? 1 What is the equity at the beginning of the year? Erity af net income is $1,000 and dividends are 55,300,how much is hen the company common stack of 5 200 and pay dividends Common Stock Net income out of the company i s common stock of $42.200 and pay dividends of $1.500,how muc ow much is dividends? 5 if the company issues common stock of $15.000 and met income is Netices Dividends

Answer 1

As per Accounting Equation, Assets = Liabilities + Equity 1) Equity balance at the beginning of the year = Assets at beginning of year - Liabilities at beginning of year Equity balance at the beginning of the year - (25000-19000) Equity balance at the beginning of the year = $ 6,000/. 2) Equity at the end of the year is = Assets at the end of the year - Liabilities at the end of the year Equity at the end of the year is = (64000-25000) Equity at the end of the year is = $ 39,000/. 3) Beginning balance of Equity + Common stock issued + Net Income - Dividend = Ending balance of Equity 6000+5200+Net Income-38900=39000 Net Income is = (39000+38900-6000-5200) Net Income is = $ 66,700/. 4) Beginning balance of Equity + Common stock issued + Net Income - Dividend = Ending balance of Equity 6000+Common stock+3000-5300=39000 Common stock is = (39000+5300-3000-6000) Common stock is = $ 35,300/. 5) Beginning balance of Equity + Common stock issued + Net Income - Dividend - Ending balance of Equity 6000-15900+15800-Dividends = 39000 Dividends is = (6000-15900+15800-39000) Dividends is = - $ 1,300/. 6) Beginning balance of Equity + Common stock issued + Net Income - Dividend - Ending balance of Equity 6000+42200+Net Income - 1900 = 39000 Net Income = (39000-1900-42200-6000) Net Income (Loss) = - $ 7,300/.