Kimmy A.S¸. had the following assets and liabilities on the dates indicated.

Kimmy began business on January 1, 2016, with an investment of 100,000 from shareholders.

Instructions

From an analysis of the change in equity during the year, compute the net income (or loss) for:

(a) 2016, assuming Kimmy paid 15,000 in dividends for the year.

(b) 2017, assuming shareholders made an additional investment of 50,000 and Kimmy paid no dividends in 2017.

(c) 2018, assuming shareholders made an additional investment of 15,000 and Kimmy paid dividends of 30,000 in 2018.

Transcribed Image Text:

December 31 Total Assets Total Liabilities .+400,000.... t260,000 2016.... t480,000.... t300,000 2017.. .t590,000.... t400,000 2018.....