Question

Vista Camera Services started the year with total assets of $ 100 comma 000 and total liabilities of $ 55 comma 000. The revenues and the expenses for the year amounted to $ 120 comma 000 and $ 80 comma 000​, respectively. During the​ year, the company did not issue any common​ stock, but it distributed dividends of $ 50 comma 000. What is the amount of​ stockholders' equity at the end of the​ year?

Answer 1

Answer:

The amount of​ stockholders' equity at the end of the​ year is $35,000

Explanation:

For computing the ending balance of the stockholder equity, first we have to compute the beginning balance of equity which is shown below:

Total assets = Total liabilities + stockholder equity

$100,000 = $55,000 + stockholder equity

So, stockholder equity = $100,000 - $55,000

                                      = $45,000

Now the ending balance of stockholder equity would equal to

= Opening balance of stockholder equity + revenues - expenses - dividend paid

= $45,000 + $120,000 - $80,000 - $50,000

= $35,000