Question

Four different companies, Sierra, Tango, Yankee, and Zulu, show the same balance sheet data at the beginning and end of a year. These data, exclusive of the amount of stockholders’ equity, are summarized as follows:


On the basis of the preceding data and the following additional information for the year, determine the net income (or loss) of each company for the year. (Suggestion: First determine the amount of increase or decrease in stockholders’ equity during the year.)
Sierra: No additional capital stock was issued, and no dividends were paid.
Tango: No additional capital stock was issued, but dividends of $55,000 were paid.
Yankee: Capital stock of $75,000 was issued, but no dividends were paid.
Zulu: Capital stock of $75,000 was issued, and dividends of $55,000 werepaid.


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  • CreatedMarch 11, 2014
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