Total assets were $60,000 and total liabilities were $33,000 at the beginning of
ID: 2499342 • Letter: T
Question
Total assets were $60,000 and total liabilities were $33,000 at the beginning of the year. Net income for the year was $11,000, and dividends of $5,000 were declared and paid during the year.
Calculate total stockholders’ equity at the end of the year. (Negative amounts should be indicated by a minus sign.)
Total assets were $60,000 and total liabilities were $33,000 at the beginning of the year. Net income for the year was $11,000, and dividends of $5,000 were declared and paid during the year.
Required:Calculate total stockholders’ equity at the end of the year. (Negative amounts should be indicated by a minus sign.)
Explanation / Answer
Total stockholders’ equity at the end of the year :
Total Assets = $60,000
Less Total Liabilities = $33,000
Share Capital & Retained Earnings = $27,000
Less: Net Income (net of dividend of $5000) = $ 6,000
Total Stockholder's equity at the end of year = $21,000
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