In: Accounting
A corporation had the following assets and liabilities at the
beginning and end of this year.
Assets | Liabilities | |||||||||
Beginning of the year | $ | 133,000 | $ | 57,017 | ||||||
End of the year | 182,500 | 73,913 | ||||||||
Determine net income or net loss for the business during the year
for each of the above separate cases: (Decreases
in equity should be indicated with a minus
sign.)
Equity = Assets - Liabilities | ||||
Net Income = Ending Equity - Beginning Equity - Additional Investment + Dividend paid | ||||
Case 1 | Case 2 | Case 3 | Case 4 | |
Beginning Equity | 75,983 | 75,983 | 75,983 | 75,983 |
Ending Equity | 108,587 | 108,587 | 108,587 | 108,587 |
Dividend paid | 0 | 8400 | 0 | 8400 |
Additional Investment in Equity | 0 | 0 | 45000 | 35000 |
Net Income | 32,604 | 41,004 | -12396 | 6,004 |