Question

Fill in the blanks.

Data Table Total Assets Total Liabilities May 31, 2018 June 30, 2018 155.000 $ 245,000 122.000 66.000 Print Done

Answer 1

Accounting Equation:

Total Assets = Total Liabilities + Total Stockholders’ Equity

Stockholders’ Equity Equation:

Ending Stockholders’ Equity = Beginning Stockholders’ Equity + Common Stock Issued + Net Income or Net Loss - Dividends

May 31, 2018:

Total Stockholders’ Equity = Total Assets - Total Liabilities
Total Stockholders’ Equity = $155,000 - $122,000
Total Stockholders’ Equity = $33,000

June 30, 2018:

Total Stockholders’ Equity = Total Assets - Total Liabilities
Total Stockholders’ Equity = $245,000 - $66,000
Total Stockholders’ Equity = $179,000

Situation A:

Ending Stockholders’ Equity = Beginning Stockholders’ Equity + Common Stock Issued + Net Income or Net Loss - Dividends
$179,000 = $33,000 + $12,000 + Net Income or Net Loss - $0
Net Income or Net Loss = $134,000

Situation B:

Ending Stockholders’ Equity = Beginning Stockholders’ Equity + Common Stock Issued + Net Income or Net Loss - Dividends
$179,000 = $33,000 + $0 + Net Income or Net Loss - $4,000
Net Income or Net Loss = $150,000

Situation C:

Ending Stockholders’ Equity = Beginning Stockholders’ Equity + Common Stock Issued + Net Income or Net Loss - Dividends
$179,000 = $33,000 + $35,000 + Net Income or Net Loss - $18,000
Net Income or Net Loss = $129,000