Question

IN 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. unt Assets Liabilities 3 bard Beginning of Year $28.000 $18,000 End of Year: 553.000 $28.000 1) What is the equity at the beginning of the year? 2) What is the equity at the end of the year? dar Beginning Equity 10,000 Ending Equity 35000 3) If the company issues common stock of $9,700 and pay dividends of $38,700, how much is net income (loss)? O 4) If net income is $2,500 and dividends are $7,100, how much is common stock? Net Income (Loss) 57,000 Common Stock 5) if the company issues common stock of $19,400 and net income is $16,500, how much is dividends? 6) If the company issues common stock of 542,200 and pay dividends of $3,500, how much is net income (loss)? Dividends Net Income (Loss) 10,700

Answer 1

1) and 2) are correct.

Basic equation:

Beginning equity + Net income + Common stock issue - Dividend = Ending equity

(Enter the given amounts in the above equation and find the remaining amount)

3)

Net income = $35,000 + $38,700 - $9,700 - $10,000

= $54,000

4)

Common stock = $35,000 + $7,100 - $2,500 - $10,000

= $29,600

5)

Dividend = $10,000 + $19,400 + $16,500 - $35,000

= $10,900

6)

Net income = $35,000 + $3,500 - $10,000 - $42,200

= -$13,700 (Net loss)