The December 31, 2013, balance sheet for Thomas Company showed total stockholders equity of $156,000. Total stockholders

Question:

The December 31, 2013, for Thomas Company showed total stockholders’ equity of $156,000. Total stockholders’ equity increased by $65,000 between December 31, 2013, and December 31, 2014. During 2014 Thomas Company acquired $20,000 cash from the issue of common stock. Thomas Company paid a $5,000 cash to the stockholders during 2014.

Required
Determine the amount of net income or loss Thomas reported on its 2014 income statement.

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... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...