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On December 31, 2019, Little Corporation's Assets and Liabilities were $66,000 and $15,000 respectively. On December...

On December 31, 2019, Little Corporation's Assets and Liabilities were $66,000 and $15,000 respectively. On December 31, 2020, the assets and liabilities were $94,000 and $28,000 respectively. During 2020, the company issued $7,000 of additional stock, and paid $3,000 of dividends. Determine the company’s net income for 2020.

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Expert Solution

   Assets Liabilities Equity
Beginning of the year $                             66,000 $                                     15,000 $             51,000
End of the year $                             94,000 $                                     28,000 $             66,000
Equity at the end of year $                       66,000.00
Add: dividend paid during the year $                         3,000.00
Less: Additional capital $                        (7,000.00)
Less: Opening capital $                     (51,000.00)
Net income for the year $                       11,000.00

ekkarill92 answered 1 year ago
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