Question

Donalty Corporation opened for business on January 1, 2022. The following information is available with regards to their accounts as of December 31, 2022: Accounts payable Accounts receivable Administrative expenses Bank loan Cash Common shares Dividends declared Equipment Insurance expense Interest expense Revenue Salaries expense $2,500 $5,500 $4,500 $55.000 $130.200 $51,000 $1,000 $25,000 $4,800 $4.000 $145.000 $78,500 The following information was also available for the vear: Activate Windows 50 to activate wind

Answer 1

Ans.	Donalty Corporation
	Statement of Change in Equity
	Year Ended December 31, 2022
		Common stock	Retained earnings	Total stockholder's equity
	Balance, Jan. 1, 2022	$51,000	$0	$51,000
	Add: Net income		$53,200	$53,200
	Less: Dividends		-$1,000	-$1,000
	Balance, June 30, 20Y3	$51,000	$52,200	$103,200
	*Total stockholder's equity = Common stock + Retained earnings
	*Calculations for the net income of Donalty corporation:
	Donalty Corporation
	Income Statement
	Year Ended December 31, 2022
	Particulars	Amount	Amount
	Revenue(a)		$145,000
	Less: Expenses:
	Salaries expense	$78,500
	Insurance expense	$4,800
	Administrative expense	$4,500
	Interest expense	$4,000
	Total expenses (b)		$91,800
	Net Income (a - b)		$53,200