Question

The following is a balance sheet for Jim Henson Yard Service at December 31, 2014. Assets Cash $13,000 Accounts receivable 6,000 Supplies 9,000 Equipment 11,000 Total assets $39,000 Liabilities and Stockholders' Equity Liabilities Accounts payable $ 8,000 Notes payable 15,000 Stockholders' equity Common stock 16,000 Total liabilities & stockholders' equity $39,000 The following additional data are available for the following year, 2015: All expenses (excluding supplies expense) total $6,000 for the year. On January 1, 2016, supplies were $11,000, and $7,000 of supplies were purchased during the year. Net income for the year was $8,000 and dividends paid were $9,000. What is the stockholder’s equity on December 31, 2015?

Answer 1

Answer:

Stock holder equity on Dec 31,2015 = $ 15000.

Explanation:

As we know that:

 Beginning equity + Net income - Dividend = Ending equity

 16000 + 8000 - 9000  = Ending equity

        Equity (Dec-31,2015) = 15000.