will need to use the answers you calculate for beginning and ending equity to an

Question

will need to use the answers you calculate for beginning and ending equity to answer the rest of the questions. Assets Liabilities Beginning of Yeer 25,000 16,000 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? Beginning Equity 9,000 Ending Equity35.000 3) If the company issues common stock of $5,200 and pay dividends of $39,000, how much is net income (loss)? 4) If net income is $1,500 and dividends are $5,500, how much is common stock? Net Income (Loss) Common Stock 5) If the company issues common stock of $15,300 and net income is $16,700, how much is dividends? 6) If the company issues common stock of $44,400 and pay dividends of $4,900, how much is net income (loss)? Dividends Net Income (Loss)

Explanation / Answer

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Refer the below working for understanding:

Assets Liabilities Equity plus Reserves Beginning Year 25000 16000 9000 End of Year 63000 28000 35000 1. Equity at Beginning of the year = Assets - Liabilities at beginning of the year =25000-16000 =9000 Part 3 Opening Equity $                          9,000 add New Stock issued $                          5,200 Total Closing Stock $                        14,200 Closing Capital & Reserves &profits 35000 Less Equity Stock during the year -14200 Less Dividend Distribution -39000 Total Loss -18200 Part 4 Opening Equity $                          9,000 New Stock issued $                          5,200 Total Closing Stock $                        14,200 Closing Capital & Reserves &profits 35000 Less Equity Stock during the year 28000 Less Dividend Distribution 5500 Total Profit 1500 Part 5 Opening Equity $                          9,000 New Stock issued $                        15,300 Total Closing Stock $                        24,300 Closing Capital & Reserves &profits 35000 Less Equity Stock during the year 24300 Less Dividend Distribution 7600 (balancing figure) Total Profit 16700 Part 6 Opening Equity $                          9,000 New Stock issued $                        44,400 Total Closing Stock $                        53,400 Closing Capital & Reserves &profits 35000 Less Equity Stock during the year $                        53,400 Less Dividend Distribution 4900 Total Profit $                      (23,300) (balancing figure)

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