Question

9 HOMEWORK - FALL 2020 - ACT 3391 3.5 points) Changes in all of E's balance sheet accounts during the current year, EXCEPT the change in E's retained earnings account, follow. Compute E's net income (or net loss) for the year assuming the only two entries E made to her retained carnings account during the year were for a cash dividend declared and paid of $30,000 and for her net income (or net loss) for the year. This is NOT a statement of cash flows problem - do NOT format it like a statement of cash flows problem; it is similar to E4 1 in your text. Cash increased Fixed assets decreased Accumulated depreciation increased Accounts payable increased Uneamed revenue decreased Common stock increased Additional paid-in-capital increased $50,000 $75,000 $10,000 $20,000 $ 5,000 $10,000 $90,000

Answer 1

Change in assets
Cash increased	$    50,000.00
Fixed assets decreased	$   (75,000.00)
Accumulated depreciation increased	$   (10,000.00)
Total	$   (35,000.00)
Change in liabilities:
Accounts payable increased	$    20,000.00
Unearned revenue decreased	$     (5,000.00)
Total	$    15,000.00
Stockholder equity :
Change in assets	$   (35,000.00)
Less: Change in liabilities:	$    15,000.00
Change in stockholder equity	$   (50,000.00)
Net Income:
Stockholder equity	$   (50,000.00)
Common stock increased	$   (10,000.00)
Additional paid-in-capital increased	$   (90,000.00)
Dividend declared	$    30,000.00
Net Income/(Loss)	$ (120,000.00)