Activity 4.b - Using the Expanded Accounting Equation Using the expanded account

Question

Activity 4.b - Using the Expanded Accounting Equation 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. Beginning of Year Assets: 27000 Liabilities 15000

End of Year Assets: 63000 Liabilities 25000

1. What is the equity at the beginning of the year?

2. What is the equity at the end of the year?

3. If the company issues commons stock of 5000, pays dividends of 37000 how much is the net income or loss?

4.If the net income is 2000 and dividends are 8500 how much is common stock?

5.If the company issues common stock of 19000 and net income is 19900 how much is dividends?

6.if the company issues common stock of 43400 and dividends of 1400 how much is the net income (loss)?

Explanation / Answer

Particulars Amounts 1. What is the equity at the beginning of the year? a Beginning of Year Assets $     27,000 b Beginning of Year Liabilities $     15,000 c Beginning of Year equity (a-b) $     12,000 2. What is the equity at the end of the year? d End of Year Assets $     63,000 e End of Year Assets $     25,000 f End of Year Assets equity (d-e) $     38,000 3. If the company issues commons stock of 5000, pays dividends of 37000 how much is the net income or loss? g issues commons stock $       5,000 h pays dividends $     37,000 i net income or loss (f+h-c-g) $     58,000 4.If the net income is 2000 and dividends are 8500 how much is common stock? j net income/(loss) $       2,000 k dividends $       8,500 l common stock $     32,500 5.If the company issues common stock of 19000 and net income is 19900 how much is dividends? m common stock $     19,000 n net income/(loss) $     19,900 o Dividend $ 12,900 6.if the company issues common stock of 43400 and dividends of 1400 how much is the net income (loss)? p common stock $     43,400 q Dividend $       1,400 r net income/(loss) $   (16,000)

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