Solution:
Net Income = $ 262,000
Stockholders` Equity | ||||||||
Assets | = | Liabilities | + | PIC | + | RE | ||
Beginning | $ 730,000 | = | $ 212,000 | + | $ 145,000 | + | $ 373,000 | $518,000 SE |
Changes | $ 264,000 | = | $ 21,000 | + | $ 31,000 | + | $ 262,000 | Net Income |
= | + | + | $ (50,000) | Dividends | ||||
Ending | $ 994,000 | = | $ 233,000 | + | $ 176,000 | + | $ 585,000 |
Working:
1)
Stockholders` Equity | ||||||||
Assets | = | Liabilities | + | PIC | + | RE | ||
Beginning | 212000+518000=730000 | = | 233000-21000=212000 | + | 176000-31000=145000 | + | 518000-145000=373000 | $518,000 SE(Given) |
Changes | 264000(Given) | = | 21000(Given) | + | 31000(Given) | + | 585000-373000+50000= 262000 | Net Income |
= | + | + | -50000(Given) | Dividends | ||||
Ending | 994000 | = | 233000(Given) | + | 176000(Given) | + | 994000-233000-176000=585000 |
2) Assets = Stockholders Equity + Liabilities = 518000 + 212000 =730000.
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