File Edit View History Bookmarks People Window Help 32% , Sun ACT -Corporat Secu
ID: 2545643 • Letter: F
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File Edit View History Bookmarks People Window Help 32% , Sun ACT -Corporat Secure https://act.pearsoncmg.com/activity/1/4/2 Assets Liabilities Beginning of Year $28,000 $18,000 End of Year $62,000 $29,000 1) What is the equity at the beginning of the year? 2) What is the equity at the end of the year? Beginning Equity Ending Equity 3) If the company issues common stock of $5,100 and pay dividends of $41,100, how much is net income (loss)? 4) If net income is $3,700 and dividends are $9,600, how much is common stock? Common Stock Net Income (Loss) 5) If the company issues common stock of $15,100 and net income is $15,600, how much is dividends? 6) If the company issues common stock of $42,000 and pay dividends of $2,900, how much is net income (loss)? Dividends Net income (Loss)Explanation / Answer
Answer to Part 1.
Assets, Beginning = Liabilities, Beginning + Stockholders’ Equity, Beginning
$28,000 = $18,000 + Stockholders’ Equity, Beginning
Stockholders’ Equity, Beginning = $10,000
Answer to Part 2.
Assets, Ending = Liabilities, Ending + Stockholders’ Equity, Ending
$62,000 = $29,000 + Stockholders’ Equity, Ending
Stockholders’ Equity, Ending = $33,000
Answer to Part 3.
Stockholders’ Equity, Ending = Stockholders’ Equity, Beginning + Stock issuance + Net Income/ (Loss) – Dividend
$33,000 = $10,000 + $5,100 + Net Income / (Loss) - $41,100
Net Income = $59,000
Answer to Part 4.
Stockholders’ Equity, Ending = Stockholders’ Equity, Beginning + Stock issuance + Net Income/ (Loss) – Dividend
$33,000 = $10,000 + Stock Issuance + $3,700 - $9,600
Stock Issuance = $28,900
Answer to Part 5.
Stockholders’ Equity, Ending = Stockholders’ Equity, Beginning + Stock issuance + Net Income/ (Loss) – Dividend
$33,000 = $10,000 + $15,100 + $15,600 - Dividends
Dividends = $7,700
Answer to Part 6.
Stockholders’ Equity, Ending = Stockholders’ Equity, Beginning + Stock issuance + Net Income/ (Loss) – Dividend
$33,000 = $10,000 + $42,000 + Net Income / (Loss) - $2,900
Net Loss = -$16,100
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