bartleby
search
close search
Hit Return to see all results

At the beginning of the current fiscal year the balance sheet for Davis Co. showed liabilities of $320,000. During the year, tiabilities decreased by $18,000, assets increased by $65,000, and paid-in capital increased from $30,000 to $192 000 Dividends declared and paid during the year were $25,000 At the end of the year, stockholders' equity totaled $429,000 Required: Calculate net income (or loss) for the year. (Negative amounts should be indicated by a minus sign.) Stockholders' Equity Assets Liabilities t. PIC RE 320,00030.000 + Beginning Changes et loss 65,000-(18000)+ ividends 302,000192.000+ (3429000 total SE) Ending 4:37 PM /14/2019

Question

Please explain this to me thoroughly, It's need for a homework assignment and I am completely clueless.

At the beginning of the current fiscal year the balance sheet for Davis Co. showed liabilities of $320,000. During the
year, tiabilities decreased by $18,000, assets increased by $65,000, and paid-in capital increased from $30,000 to
$192 000 Dividends declared and paid during the year were $25,000 At the end of the year, stockholders' equity
totaled $429,000
Required:
Calculate net income (or loss) for the year. (Negative amounts should be indicated by a minus sign.)
Stockholders' Equity
Assets Liabilities t. PIC RE
320,00030.000 +
Beginning
Changes
et loss
65,000-(18000)+
ividends
302,000192.000+
(3429000 total SE)
Ending
4:37 PM
/14/2019
help_outline

Image Transcriptionclose

At the beginning of the current fiscal year the balance sheet for Davis Co. showed liabilities of $320,000. During the year, tiabilities decreased by $18,000, assets increased by $65,000, and paid-in capital increased from $30,000 to $192 000 Dividends declared and paid during the year were $25,000 At the end of the year, stockholders' equity totaled $429,000 Required: Calculate net income (or loss) for the year. (Negative amounts should be indicated by a minus sign.) Stockholders' Equity Assets Liabilities t. PIC RE 320,00030.000 + Beginning Changes et loss 65,000-(18000)+ ividends 302,000192.000+ (3429000 total SE) Ending 4:37 PM /14/2019

fullscreen
check_circleAnswer
Step 1

The first step in the question is to find out the begining balance of each itme. The begining balance is based on the equation;

Assets = Liabilities + Stockholder's equity

The Liabilities of $ 320000 in begining and Paid in capital of $ 30000 in the begining has been given.

However, the Begining Balance of RE has not been given but the ending balance of RE has been given in the question.

Therefore, to compute the Begining balance of RE back computation has to be made.

 

There’s more to the solution above. Sign up now to see!

Sign Up

Not ready to register yet? Check out a sample Q&A here.

Stuck on your homework?

Get expertly curated answers to your homework questions for just $9.99/month

Get As ASAP
Tagged in

Business

Accounting

Sorry about that. What wasn’t helpful?