Question

The amount by which revenues exceed expenses Net Income and Stockholders' Equity for Four Businesses Four different corporations, Aries, Gemini, Leo, and Pisces, show the same balance sheet data at the beginning and end of a year. These data, exclusive of the amount of stockholders' equity, are summarized as follows Total Assets $95,200 $152,300 Total Liabilities $38,100 $64,000 Beginning of the year End of the year On the basis of the above data and the following additional information for the year, determine the net income (or loss) of each company for the year (Hint: First, determine the amount of increase or decrease in stockholders' equity during the year.) Aries: Gemini: Leo Pisces Enter all amounts as positive numbers Aries Gemini Leo Pisces No additional common stock was issued, and no dividends were paid No additional common stock was issued, but dividends of $6,200 were paid Additional common stock of $17,400 was issued, but no dividends were paid Additional common stock of $18,600 was issued, and dividends of $6,200 were paid

Answer 1

Though all the four corporations have same beginning and ending balances, but net income differs from one and other. Though change in equity was same, the net income is different depending upon additional stock issued and dividend paid.