At the beginning of the current fiscal year, the balance sheet of Cummings Co. showed liabilities of

Question:

At the beginning of the current fiscal year, the balance sheet of Cummings Co. showed liabilities of $657,000. During the year, liabilities decreased by $108,000, assets increased by $231,000, and paid-in capital increased by $30,000 to $570,000. Dividends declared and paid during the year were $186,000. At the end of the year, stockholders’ equity totaled $1,137,000.

Required:

Calculate net income or loss for the year using the same format as shown in Exercise 8.5.

Exercise 8.5.

On April 10, 2019, Amelia Inc. purchased 1,800 shares of its own common stock in the market for $23 per share. On September 28, 2019, the company sold 700 of these shares in the open market at a price of $26 per share.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... 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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