On the basis of the above data and the following additional information for the year, determine the… 1 answer below »
We're the ideal place for homework help. If you are looking for affordable, custom-written, high-quality and non-plagiarized papers, your student life just became easier with us. Click either of the buttons below to place your order.
Order a Similar Paper
Order a Different Paper
Four different corporations, A, B, C, and D, show the same balance sheet data at the beginning and end of a year. These data, exclusive of the amount of stockholders’ equity, are summarized as follows:
Total
Total
Assets
Liabilities
Beginning of the year
$525,000
$220,000
End of the year
970,000
425,000
On the basis of the above data and the following additional information for the year, determine the net income (or loss) of each company for the year. (Suggestion: First determine the amount of increase or decrease in stockholders’ equity during the year.)
Company A: No additional capital stock was issued, and no dividends were paid.
Company B: No additional capital stock was issued, but dividends of $50,000 were paid.
Company C: Capital stock of $75,000 was issued, but no dividends were paid.
Company D: Capital stock of $75,000 was issued, and dividends of $50,000 were paid.