Question

Zapper has beginning equity of $279,000, net income of $62,000, dividends of $51,000 and investments by stockholders of $17,000. its ending equity is:

Answer 1

Given: Zapper’s beginning equity of $279,000

           Net Income of $62,000

           Dividends of $51,000

           Investments by stockholders of $17,000

Formula: Beginning equity + Investments + Net Income – Net Loss – Withdrawals = Ending Equity

Solution: $279,000 + $17,000 + $62,000 - $51,000 = $307,000

Zapper’s ending equity is $307,000