Review exercise—calculate net income At the beginning of the current fiscal year, th...

Review exercise—calculate net income At the beginning of the current fiscal year, the balance sheet of Cummings Co. showed liabilities of $438,000. During the year, liabilities decreased by $72,000; assets increased by $154,000; and paid-in capital increased by $20,000 to $380,000. Dividends declared and paid during the year were $124,000. At the end of the year, stockholders’ equity totaled $758,000.

Required:

Calculate net income or loss for the year using the same format as shown in Exercise 8.5.

Refer to Exercise 8.5:

Review exercise—calculate net income At the beginning of the current fiscal year, the balance sheet of Hughey, Inc., showed stockholders’ equity of $520,000. During the year, liabilities increased by $21,000 to $234,000; paid-in capital increased by $40,000 to $175,000; and assets increased by $260,000. Dividends declared and paid during the year were $55,000.

Required:

Calculate net income or loss for the year. (Hint: Set up the accounting equation for beginning balances, changes during the year, and ending balances; then solve for missing amounts.)