Answer:
1. 2016 -$1,000
2017 $35,000
2.-$1,000
3. $45,000
Explanation:
1. Computation for the changes in Coaches and Carriages owners’ equity during 2016 and 2017
First step is to calculate owner equity for 2015, 2016 and 2017
Using this formula
Stockholders equity=Assets-Liabilities
Let plug in the formula
2015 Stockholders equity=$25,000-$12,000
2015 Stockholders equity=$13,000
2016 Stockholders equity=$79,000-$76,000
2016 Stockholders equity=$12,000
2017 Stockholders equity=$184,000-$137,000
2017 Stockholders equity=$47,000
Now let Compute for the changes in Coaches and Carriages owners’ equity during 2016 and 2017
Change in stockholders’ equity during 2016
Using this formula
Changes in stockholders’ equity during 2016 =2016 Stockholders equity-2015 Stockholders equity
Let plug in the formula
Changes in stockholders’ equity during 2016 =$12,000-$13,000
Changes in stockholders’ equity during 2016 =-$1,000
Change in stockholders’ equity during 2017
Using this formula
Changes in stockholders’ equity during 2017=2017 Stockholders equity-2016 Stockholders equity
Let plug in the formula
Changes in stockholders’ equity during 2017 =$47,000-$12,000
Changes in stockholders’ equity during 2017=$35,000
Therefore the changes in Coaches and Carriages owners’ equity during 2016 is -$1,000 and 2017 $35,000
2. Computation for the amount of Coaches and Carriages’ net income (or loss) for 2016 assuming that no dividends were paid and the owners made no additional contributions during the year.
Using this formula
2016 Coaches and Carriages’ net income (or loss) = Carriages owners’ equity during 2016-Dividend
Let plug in the formula
2016 Coaches and Carriages’ net income (or loss) = -$1,000-$0
2016 Coaches and Carriages’ net loss= -$1,000
Therefore the amount of Coaches and Carriages’ net income (or loss) for 2016 assuming that no dividends were paid and the owners made no additional contributions during the year will be -$1,000
3. Computation for the amount of Coaches and Carriages’ net income (or loss) for 2017 assuming that dividends paid during the year amounted to $10,000 and no additional contributions were made by the owner
Using this formula
2017 Coaches and Carriages’ net income =Ending Stockholders equity- Beginning Stockholders equity +Dividend
Let plug in the formula
2017 Coaches and Carriages’ net income = $47,000-$12,000+$10,000
2017 Coaches and Carriages’ net income=45,000
Therefore the amount of Coaches and Carriages’ net income (or loss) for 2017 assuming that dividends paid during the year amounted to $10,000 and no additional contributions were made by the owner will be $45,000
