Kimmy A.S. had the following assets and liabilities on the dates indicated.. Dec

Question

Kimmy A.S. had the following assets and liabilities on the dates indicated.. December 31 Total Assets. .Total Liabilities.. 2016 t400,000 17. 480,000 590,000. 60,000. t300,000. t400,000 2018. Kimmy began business on January 1,2016, with an investment of 100,000 from shareholders. uctions From an analysis of the change in equity during the year, compute the net income (or loss) for (a) 2016, assuming Kimmy paid 15,000 in dividends for the year (b) 2017, assuming shareholders made an additional investment of 50,000 and Kimmy paid no dividends in 2017. (c) 2018, assuming shareholders made an additional investment of t15,000 and Kimmy paid dividends of t30,000 in 2018. RCISE 1-10 Equity-12/31/16(400,00060,000) Equity-1/1/16 140,000 100.000 40,000

Explanation / Answer

31st December Total assets Total liabilities Equity 2016 400000 260000 140000 2017 480000 300000 180000 2018 590000 400000 190000 Net income = Ending equity-Beginning equity+Dividends-Additional investment a) 2016 NI = 140000-100000+15000 = $           55,000 Net income b) 2017 NI = 180000-140000-50000 = $         (10,000) Net loss c) 2018 NI = 190000-180000+30000-15000 = $           25,000 Net income

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