Solution:
Answer for 1. and 2. :
Particulars Assets liabilities owner's equity
Beginning capital 29000 16000 13000
Ending capital 63000 29000 34000
3. Beginning capital 13000
add new stock 5500
Add : Income ?
Sub total ?
Less: Dividend 36700
Closing Capital 34000
By inserting the last two numbers of the sentence you will determine the "Subtotal." : 36700+34000 = 70700
We learn from the top of the document that the equity of the investor at the outset was $13,000 and the shareholding of $5500 was released. Therefore, when calculating net income, we have $18,500.
Now , Net income =70700-18500=$ 52,200
4. Closing Capital+Dividend =Common stock +net income
=34000+8100
=Common stock +1000
Then common stock = $ 41,100
5. Closing Capital + Dividend = Opening capital +Common stock issued +net income
34000+dividend =13000+16700+18000
Dividend = $13700
6. Closing Capital + Dividend = Opening capital +Common stock issued +net income
=34000+1600 =13000+41100+ net income or loss
Net loss=$ 18500
Expanded accounting Equation for a corporation is :
Assets = Liabilities + Paid-in Capital + Revenues – Expenses – Dividends – Treasury Stock
