shanefly
Sep 28, 2009, 11:56 AM
At the beginning of the current fiscal year, the balance sheet for Davis, Co. showed liability of $32,000. During the year, liabilities decreased by $18,000, assets increased by $65,000 and paid in full capital increased from $30,000 to $192,000. Dividends declared and paid during the year were $25,000. At the end of the year, owners equity totaled $429,000.
Required:
Calculate net income (loss) for the year. Hint: set up an accout equation for the beginning of the year, changes during the year, and at the end of the year. Enter known data and solve for the unknows. Remember, net income (or loss) may not be the only item affecting retained earnings.
Required:
Calculate net income (loss) for the year. Hint: set up an accout equation for the beginning of the year, changes during the year, and at the end of the year. Enter known data and solve for the unknows. Remember, net income (or loss) may not be the only item affecting retained earnings.