At the beginning of the current fiscal year, the balance sheet for Davis Co. showed liabilities of
Question:
At the beginning of the current fiscal year, the balance sheet for Davis Co. showed liabilities of $160,000. During the year, liabilities decreased by $9,000, assets increased by $33,000, and paidin capital increased from $15,000 to $96,000. Dividends declared and paid during the year were $12,000. At the end of the year, stockholders’ equity totaled $215,000.
Required:
Calculate net income (or loss) for the year. Set up an accounting equation for the beginning of the year, changes during the year, and at the end of the year. Enter known data and solve for the unknowns. Remember, net income [or loss] may not be the only item affecting retained earnings.
Balance SheetBalance 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...
Step by Step Answer:
Accounting What the Numbers Mean
ISBN: 978-1260565492
12th edition
Authors: David Marshall, Wayne McManus, Daniel Viele