Answer and Explanation:
The computation is shown below:
1.
Beginning Equity = Beginning Assets – Beginning Liabilities
= $27,000 - $16,000
= $11,000
2.
Ending Equity = Ending Assets – Ending Liabilities
= $61,000 - $25,000
= $36,000
3.
Increase in Equity = Ending Equity – Beginning Equity
= $36,000 - 11,000
= $25,000
Now
Increase in Equity = Issue of Common Stock + Net Income - Dividend
$25,000 = $5,300 + Net Income - $44,200
Net Income = $63,900
4.
Increase in Equity = Issue of Common Stock + Net Income - Dividend
$25,000 = Issue of Common Stock + $3,800 - $6,600
Issue of Common Stock = $27,800
5.
Increase in Equity = Issue of Common Stock + Net Income – Dividend
$25,000 = $17,200 + $19,600 - Dividend
Dividend = $11,800
6.
Increase in Equity = Issue of Common Stock + Net Income – Dividend
$25,000 = $42,900 + Net Income - $3,100
Net Income (loss) = -$14,800
