a.
An accounting equation is formed by three main elements, namely, asset account, liability account and equity account. The formation is done as: Assets = Liabilities + Equity.
Every business transaction can be identified and analyzed through this accounting equation for the purpose of further analyzing the effects of each such transaction on the asset, liability and equity.
To compute: Income or loss, if common stock of $3,000 was issued and dividends amounting to $7,000 was paid during the current year.
b.
Accounting Equation:
An accounting equation is formed by three main elements, namely, asset account, liability account and equity account. The formation is done as: Assets = Liabilities + Equity.
Every business transaction can be identified and analyzed through this accounting equation for the purpose of further analyzing the effects of each such transaction on the asset, liability and equity.
To compute: Income or loss, if additional common stock of $15,000 was issued and no dividends were paid during the year
c.
Accounting Equation:
An accounting equation is formed by three main elements, namely, asset account, liability account and equity account. The formation is done as: Assets = Liabilities + Equity.
Every business transaction can be identified and analyzed through this accounting equation for the purpose of further analyzing the effects of each such transaction on the asset, liability and equity.
To compute: Income or loss, if no additional common stock was issued and no dividends of $12,000 were paid during the year
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FIN & MGR ACCOUNTING W/ACCESS
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- Shep Company’s records show the following information for the current year: Beginning of year End of year Total assets $ 50,000 $ 80,000 Total liabilities $ 22,000 $ 35,000 Determine net income (loss) for each of the following separate situations. (For all requirements, losses should be entered with a minus sign.) a. Additional common stock of $3,000 was issued, and dividends of $7,000 were paid during the current year.b. Additional common stock of $15,000 was issued, and no dividends were paid during the current year.c. No additional common stock was issued, and dividends of $12,000 were paid during the current yeararrow_forwardSubject: acountingarrow_forwardNeed Answerarrow_forward
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