Question

At September 1, 2018, Swifty Co. reported stockholders’ equity of $156000. During the month, Swifty generated revenues of $37400, incurred expenses of $20000, purchased equipment for $4920 and paid dividends of $2040. What is the amount of stockholders’ equity at September 30, 2018?

Answer 1

Answer:

$171,360

Explanation:

Given that,

At September 1, 2018, Swifty Co. reported stockholders’ equity = $156,000

Revenues = $37,400

Expenses = $20,000

Purchased equipment = $4,920

Paid dividends = $2,040

Net income:

= Revenues - Expenses

= $37,400 - $20,000

= $17,400

Stockholders’ equity at September 30, 2018:

= Beginning balance + Net income - Dividend paid

= $156,000 + $17,400 - $2,040

= $171,360

Therefore, the amount of stockholders’ equity at September 30, 2018 is $171,360.