Using the expanded accounting equation, calculate and enter the answers for each
ID: 2587618 • Letter: U
Question
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. Assets Liabilities Beginning of Year: $27,000 $15,000 End of Year: $63,000 $28,000 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 common stock of $9,600 and pay dividends of $37,700, how much is net income (loss)? 4) If net income is $1,800 and dividends are $6,200, how much is common stock? 5) If the company issues common stock of $16,400 and net income is $18,500, how much is dividends? 6) If the company issues common stock of $41,100 and pay dividends of $3,400, how much is net income (loss)?
Explanation / Answer
1 what is the equity at the Beginning of the year Assets = Liabilities + Equity equity at the beginning of the year = Beginning Value ofassets - Beginning value of Liabilities =$27000-$15000 =$12000 2 what is the equity at the End of the year Assets = Liabilities + Equity Ending Value of equity = Ending Value ofassets - Ending Value of Liabilities =$63000-$28000 =$35000 3 Net Income for the year if the Common stock issued during the year $9600 and Dividend paid 37700 Net Income =Closing Value of equity - Opening Value of Equity - Issued Equity + Dividends paid Net Inocme =$35000-$12000-$9600+$37700 =$51100 4 if the Net Income is $1800 and Dividneds are $6200 , how much is the commmon stock? Common stock issued =Closing Value of equity - Opening Value of Equity - Net Income + Dividends paid Commons tock issued =$35000-$12000-$1800+$6200 =$27400 5 If the company issues common stock of $16,400 and net income is $18,500, how much is dividends Dividends Paid = Opening Value of Equity - Closing Value of Equity + Net Income + Common stock issued =$12000-$35000+$18500+16400 =$11900 6 If the company issues common stock of $41,100 and pay dividends of $3,400, how much is net income (loss)? Net Income / (Loss) =Closing Value of equity - Opening Value of Equity - Issued Equity + Dividends paid Net Inocme/ (Loss) =$35000-$12000-$41100+$3400 =($14700)
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