Question

Pearson ACT -- Corporations - Google Chrome act.pearsoncmg.com/activity/1/4/2 Assets Liabilities Beginning of Year: $27,000 $17,000 End of Year: $62,000 $25,000 1) What is the equity at the beginning of the year? 2) What is the equity at the end of the year? Beginning Equity 10,000 Ending Equity 37,000 3) If the company issues common stock of $7,100 and pay dividends of $41,000, how much is net income (loss)? 4) If net income is $2,300 and dividends are $9,500 common stock? Net Income (Loss) 60,900 Common Stock 34,200 5) If the company issues common stock of $16,300 and net income is $19,000, how much is dividends? 6) If the company issues common stock of $43,200 dividends of $1,900, how much is net income (loss) Net Income (Loss) 69,300 Dividends 14,600 RE Type here to search

i cannot find the dividends and net income .

Answer 1

Ending Equity = Beg Equity + Common Stock issued + Net Income - Dividend

5.
37000 = 10000 + 16300 + 19000 - Dividend
Dividend = $8300

6.
37000 = 10000 + 43200 + Net Income - 1900
Net Income = ($14300) i.e. Loss

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