The December 31, Year 1, balance sheet for James Company showed total stockholders equity of $156,000. Total

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The December 31, Year 1, balance sheet for James Company showed total stockholders’ equity of $156,000. Total stockholders’ equity increased by $65,000 between December 31, Year 1, and December 31, Year 2. During Year 2, James Company acquired $20,000 cash from the issue of common stock. James Company paid a $5,000 cash dividend to the stockholders during Year 2.


Required

Determine the amount of net income or loss James Company reported on its Year 2 income statement. Remember that stock issues, net income, and dividends all change total stockholders’ equity.

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Introductory Financial Accounting For Business

ISBN: 9781260575309

2nd Edition

Authors: Thomas Edmonds, Christopher Edmonds, Mark Edmonds, Jennifer Edmonds, Philip Olds

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