Question

Kingbird, Inc. started the year with total assets of $309000 and total liabilities of $249000. During the year the business recorded $631000 in revenues, $325000 in expenses, and dividends of $56000. Stockholders’ equity at the end of the year was:________.

Answer 1

Answer:

The answer is $310,000

Explanation:

Equity is the residual interest in a company. It is also known as net assets.

In this question, we need to do two calculations here.

First, equity = asset - liability.

= $309,000 - $249000

$60,000

Second equity is revenue - expense - liability

Revenue is $631,000

Expense is $325000

Dividend is $56000

So we have, $631,000-$325,000-$56,000

=$250,000

Therefore, Stockholders’ equity at the end of the year was

$60,000 + $250,000

=$310,000