Assets = Liabilities + Stockholders’ Equity Cash + Accounts Receivable + Supplies + Equipment Accounts Payable Common Stock Retained Earnings = + + Revenues - Expenses - Dividends 1. $ 14,000 $ 14,000 2. – 1,000 $ 4,500 $ 3,500 3. – 850 $ 850 4. 4,900 $ 3,700 $ 8,600 Service Revenue 5. – 1,200 – 1,200 6. – 2,500 -$ 2,500 7. – 750 –$ 750 Rent Expense 8. 500 – 500 9. – 4,600 – 4,600 Salaries/Wages Expense 10. 700 – 700 Utilities Expense (b) Determine how much stockholders’ equity increased for the month. Increase in stockholders' equity $ Enter the increase in stockholders' equity in dollars (c) Compute the amount of net income for the month. Net income $ Enter the net income in dollars
Assets = Liabilities + Stockholders’ Equity Cash + Accounts Receivable + Supplies + Equipment Accounts Payable Common Stock Retained Earnings = + + Revenues - Expenses - Dividends 1. $ 14,000 $ 14,000 2. – 1,000 $ 4,500 $ 3,500 3. – 850 $ 850 4. 4,900 $ 3,700 $ 8,600 Service Revenue 5. – 1,200 – 1,200 6. – 2,500 -$ 2,500 7. – 750 –$ 750 Rent Expense 8. 500 – 500 9. – 4,600 – 4,600 Salaries/Wages Expense 10. 700 – 700 Utilities Expense (b) Determine how much stockholders’ equity increased for the month. Increase in stockholders' equity $ Enter the increase in stockholders' equity in dollars (c) Compute the amount of net income for the month. Net income $ Enter the net income in dollars
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter11: Stockholders' Equity
Section: Chapter Questions
Problem 11.4E
Related questions
Question
Assets | = | Liabilities | + | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Cash |
+ |
Accounts
Receivable |
+ |
Supplies
|
+ |
Equipment
|
Accounts
Payable |
Common
Stock |
|||||||||||
= | + | + |
Revenues
|
- |
Expenses
|
- |
Dividends
|
||||||||||||
1. | $ 14,000 | $ 14,000 | |||||||||||||||||
2. | – 1,000 | $ 4,500 | $ 3,500 | ||||||||||||||||
3. | – 850 | $ 850 | |||||||||||||||||
4. | 4,900 | $ 3,700 | $ 8,600 |
Service Revenue
|
|||||||||||||||
5. | – 1,200 | – 1,200 | |||||||||||||||||
6. | – 2,500 | -$ 2,500 | |||||||||||||||||
7. | – 750 | –$ 750 |
Rent Expense
|
||||||||||||||||
8. | 500 | – 500 | |||||||||||||||||
9. | – 4,600 | – 4,600 |
Salaries/Wages Expense
|
||||||||||||||||
10. | 700 | – 700 |
Utilities Expense
|
(b) Determine how much stockholders’ equity increased for the month.
Increase in stockholders' equity | $ Enter the increase in stockholders' equity in dollars |
(c) Compute the amount of net income for the month.
Net income | $ Enter the net income in dollars |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Recommended textbooks for you
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Fundamentals of Financial Management, Concise Edi…
Finance
ISBN:
9781305635937
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Fundamentals of Financial Management, Concise Edi…
Finance
ISBN:
9781305635937
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning