The beginning assets were $437,800, beginning liabilities were $262,660, common

Question

The beginning assets were $437,800, beginning liabilities were $262,660, common stock issued during the year totaled $45,100, revenue for the year was $414,450, expenses for the year were $280,100, dividends declared was $22,800, and ending liabilities is $350,250.What is the ending equity for the year?

The beginning assets were $437,800, beginning liabilities were $262,660, common stock issued during the year totaled $45,100, revenue for the year was $414,450, expenses for the year were $280,100, dividends declared was $22,800, and ending liabilities is $350,250.What is the ending equity for the year?

Explanation / Answer

Hi,

Please find the answer as follows:

Beginning Owner's Equity = Opening Assets - Opening Liabilities = 437800 - 262660 = 175140

Add Common Stock Issued = 45100

Add Net Income Transferred to Retained Earnings = 414450 - 280100 - 22800 = 111550

Ending Equity Balance = 175140 + 45100 + 111550 = 331790

Option A (331790) is the correct answer.

Thanks.

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