At the beginning of its current fiscal year, Willie Corp.'s balance sheet showed assets of $13,600...

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At the beginning of its current fiscal year, Willie Corp.s balance sheet showed assets of $13,600 and liabilities of $6,700.

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Answer 1

Answer #1

					Stockholder' Equity
	Asset	=	Liabilities	+	PIC	+	RE
Beginning	$13600	=	$6700	+	$0	+	$6900
Changes:	-5900	=	-900	+	0	+	2900	Net income
						+	-7900	Dividends
Ending	$7700	=	$5800	+	$0	+	$1900

Beginning Retained earnings= Beginning assets-Beginning liabilities-Beginning PIC

= $13600-6700-0= $6900

Ending liabilities= $6700-900= $5800

Changes in assets= Beginning asset-Ending asset

= $13600-7700= $5900

Ending RE= Ending asset-Ending liabilities-Ending PIC

= $7700-5800-0= $1900

Dividends= Beginning RE+Net income-Ending RE

= $6900+2900-1900= $7900

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Answer 2

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