Exercise 2-24 (Algo) Computing net income LO P1 A company had the following assets and liabilities at the beginning and end of this year. Beginning of the year End of the year Assets $ 83,500 139,500 Liabilities $ 35,796 56,498 a. Owner made no investments in the business, and no dividends were paid during the year. b. Owner made no investments in the business, and dividends paid were $7,200 during the year. c. No dividends were paid during the year, but the owner did invest an additional $45,000 cash in exchange for common stock. d. Dividends paid were $7,200 during the year, and the owner did invest an additional $35,000 cash near year-end in exchange for common stock. Determine net income or net loss for the business during the year for each of the above separate cases: Note: Decreases in equity should be indicated with a minus sign. Answer is complete but not entirely correct. a. b. C. d. Beginning of the year-Equity $ 47,704 $ 47,704 $ 47,704 $ 47,704 Owner investments 13,950 X 83,002X 47,704 X 35,298X Dividends 7,200X 83,002X 47,704 X 42,498 X Net income (loss) 35,298 ( 42,498 (9,702) 7,498 End of the year-Equity $ 83,002 $ 83,002 $ 83,002 $ 83,002

Exercise 2-24 (Algo) Computing net income LO P1 A company had the following assets and liabilities at the beginning and end of this year. Beginning of the year End of the year Assets $ 83,500 139,500 Liabilities $ 35,796 56,498 a. Owner made no investments in the business, and no dividends were paid during the year. b. Owner made no investments in the business, and dividends paid were $7,200 during the year. c. No dividends were paid during the year, but the owner did invest an additional $45,000 cash in exchange for common stock. d. Dividends paid were $7,200 during the year, and the owner did invest an additional $35,000 cash near year-end in exchange for common stock. Determine net income or net loss for the business during the year for each of the above separate cases: Note: Decreases in equity should be indicated with a minus sign. Answer is complete but not entirely correct. a. b. C. d. Beginning of the year-Equity $ 47,704 $ 47,704 $ 47,704 $ 47,704 Owner investments 13,950 X 83,002X 47,704 X 35,298X Dividends 7,200X 83,002X 47,704 X 42,498 X Net income (loss) 35,298 ( 42,498 (9,702) 7,498 End of the year-Equity $ 83,002 $ 83,002 $ 83,002 $ 83,002

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

Chapter1: Accounting As A Form Of Communication

Section: Chapter Questions

Problem 1.10E: Net Income (or Loss) and Retained Earnings The following information is available from the records...

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