Question

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. Assets Liabilities Beginning of Year: 27,000 $16,000 End of Year: $63,000 $26,000 1) What is the equity at the beginning of the year? 2) What is the equity at the end of the year? Beginning Equity Ending Equity 3) If the company issues common stock of $6,400 and pay dividends of $39,200, how much is net income (loss)? 4) If net income is $2,500 and dividends are $6,600, how much is common stock? Common Stock Net Income (Loss) 5) If the company issues common stock of $15,600 and net income is $15,800, how much is dividends? 6) If the company issues common stock of $44,000 and pay dividends of $2,700, how much is net income (loss)? Dividends Net Income (Loss)

Answer 1

Equity=	Assets - Liabilities
	Assets	Liabilites	Equity= Assets - liabilities
Beginning of year	27,000	16,000	11,000
End of Year	63,000	26,000	37,000
Solution 1
Equity at the beginning	11,000
Solution 2
Equity at the end	37,000
Solution 3
Equity at the end	37,000
New issued equity	(6,400)
Dividends paid	39,200
less opening equity	(11,000)
Net Income	58,800
Solution 4
Equity at the end	37,000
Dividends paid	6,600
Net Income	(2,500)
less opening equity	(11,000)
Common Stock	30,100
Solution 5
Equity at the end	37,000
New issued equity	(15,600)
Net Income	(15,800)
less opening equity	(11,000)
Dividends paid	(5,400)
Solution 6
Equity at the end	37,000
New issued equity	(44,000)
Dividend Paid	2,700
less opening equity	(11,000)
Net Income/(Loss)	(15,300)