oth Company had the following assets and liabilities on the dates indicated. 31
ID: 2329602 • Letter: O
Question
oth Company had the following assets and liabilities on the dates indicated. 31 2016 2017 2018 $487,000 $567,000 $697,000 $333,000 $383,000 $483,000 Toth began business on January 1, 2016, with an investment of $99,000 from stockholders. From an analysis of the change in stockholders' equity during the year, compute the net income (or loss) for: (a) 2016, ass Net income (loss) for 2016 (b) 2017, assuming stockholders made an additional investment of $45,000 and Toth paid no dividends in 2017 Toth paid $19,000 in dividends for the year. (c) 2018, assuming stockholders made an additional investment of $23,000 and Toth paid dividends of $22,000 in 2018. Net income (loss) for 2018 ng this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor
Explanation / Answer
Stockholders’ Equity, January 1, 2016 = $99,000
Stockholders’ Equity, December 31, 2016 = Total Assets, December 31, 2016 - Total Liabilities, December 31, 2016
Stockholders’ Equity, December 31, 2016 = $487,000 - $333,000
Stockholders’ Equity, December 31, 2016 = $154,000
Stockholders’ Equity, December 31, 2017 = Total Assets, December 31, 2017 - Total Liabilities, December 31, 2017
Stockholders’ Equity, December 31, 2017 = $567,000 - $383,000
Stockholders’ Equity, December 31, 2017 = $184,000
Stockholders’ Equity, December 31, 2018 = Total Assets, December 31, 2018 - Total Liabilities, December 31, 2018
Stockholders’ Equity, December 31, 2018 = $697,000 - $483,000
Stockholders’ Equity, December 31, 2018 = $214,000
Answer a.
Stockholders’ Equity, December 31, 2016 = Stockholders’ Equity, January 1, 2016 + Net Income (loss) - Dividends
$154,000 = $99,000 + Net Income (loss) - $19,000
Net Income (loss) = $74,000
Answer b.
Stockholders’ Equity, December 31, 2017 = Stockholders’ Equity, December 31, 2016 + Net Income (loss) + Additional Investment - Dividends
$184,000 = $154,000 + Net Income (loss) + $45,000 - $0
Net Income (loss) = -$15,000
Answer c.
Stockholders’ Equity, December 31, 2018 = Stockholders’ Equity, December 31, 2018 + Net Income (loss) + Additional Investment - Dividends
$214,000 = $184,000 + Net Income (loss) + $23,000 - $22,000
Net Income (loss) = $29,000
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