AssetsLiabilitiesBeginning of Year:$27,000$16,000End of Year:$61,000$25,0004) If net income is $3,800 and dividends are $6,600, how much is common stock?5) If the company issues common stock of $16,500 and net income is $18,700, how much is dividends? 6) If the company issues common stock of $42,900 and pay dividends of $3,100, how much is net income (loss)?

Question
Asked Dec 11, 2019
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  Assets Liabilities
Beginning of Year: $27,000 $16,000
End of Year: $61,000 $25,000

4) If net income is $3,800 and dividends are $6,600, how much is common stock?

5) If the company issues common stock of $16,500 and net income is $18,700, how much is dividends?
 
6) If the company issues common stock of $42,900 and pay dividends of $3,100, how much is net income (loss)?
 
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Expert Answer

Step 1

Compute the amount of common stock:

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Beginning Equity + Issue of Common Ending Equity = Stock + Net Income – Dividend ($27.000 – $16,000)+ $61.000 – $25,000 =| Issue of Common Stock +$3,800 – $6.600 $11,000+ Issue of Common $36,000 = Stock +$3,800 – $6,600 Issue of = 27,800 Common Stock

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Step 2

5. Compute the amount of dividend:...

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Beginning Equity + Issue of Common Ending Equity = Stock +Net Income – Dividend [($27.000 – $16,000) $61,000 -$25,000 +$16,500 + $18,700 – Dividend $11.000 + $16,500 Dividend = +$18,700 – $36,000 Dividend = $10,200

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