Four different proprietorships, M, N, O, and P, show the same balance sheet data at the beginning

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Four different proprietorships, M, N, O, and P, show the same balance sheet data at the beginning and end of a year. These data, exclusive of the amount of owners€™ equity, are summarized as follows:

Four different proprietorships, M, N, O, and P, show the

On the basis of the above data and the following additional information for the year, determine the net income (or loss) of each company for the year.
Company M: No additional capital stock was issued, and no dividends were paid.
Company N: No additional capital stock was issued, but dividends of $60,000 were paid.
Company O: Capital stock of $150,000 was issued, but no dividends were paid.
Company P: Capital stock of $150,000 was issued, and dividends of $60,000 werepaid.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Financial Accounting An Integrated Statements Approach

ISBN: 978-0324312119

2nd Edition

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

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