Asset, Liability and stockholder equity. Please help me solve asap! At the begin

Question

Asset, Liability and stockholder equity. Please help me solve asap!

At the beginning of the current fiscal year, the balance sheet for Davis Co. showed liabilities of $640,000. During the year liabilities decreased by $36,000, assets increased by $130,000, and paid-in capital increased from $60,000 to $384,000. Dividends declared and paid during the year were $50,000. At the end of the year, stockholders' equity totaled $858,000. Calculate net income (or loss) for the year. (Negative amounts should be indicated by a minus sign.)

Explanation / Answer

Working

Total Stockholders Equity at the end = 858000

PIC at the end + RE at the end = Total Stockholders Equityat the end

384000 + REat the end = 858000

RE at the end = 858000-384000

RE at the end = 474000

RE at the beginning =RE at the end + Dividend Paid

RE at the beginning = 474000+50000

RE at the beginning = 524000

Total liability & Stock holder Equity = Total Asset

At beginning

Total Asset = Liabilities + Stockholders Equity

Total Asset = 640000 + (60000+524000)

Total Asset = 1224000

At the end

Total Asset = 1224000 + 130000 = 1354000

Stockholders Equity Assets = Liabilities + PIC + RE Beginning 1224000 = 640000 + 60000 + 524000 Changes 130000 = -36000 + 324000 + -50000 Ending 1354000 = 604000 + 384000 + 474000

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