Four different companies, E, F, G, and H, show the same balancesheet data at the

Question

Four different companies, E, F, G, and H, show the same balancesheet data at the beginning and end of a year. These data,exclusive of the amount of owners’ equity, are summarized asfollows:

                                               Total Assets        TotalLiabilities

Beginning of theyear                $600,000               $240,000

End of theyear                          $960,000             $520,000

On the basis of the above data and the following additionalinformation for the year, determine the net income (or loss) ofeach company for the year. (Hint: First, determine the amountof increase or decrease in stockholders’ equity during theyear.)

Company E: No additional capital stock was issued, and nodividends were paid

Company F: No additional capital stock was issued, anddividends of $48,000 were paid

Company G: Capital stock of $120,000 was issued, but nodividends were paid

Explanation / Answer

Four different companies, E, F, G, and H, show the same balancesheet data at the

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