A corporation had the following assets and liabilities at the beginning and end of this year. Determine
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Determine the net income earned or net loss incurred by the business during the year for each of the following separate cases:
a. Owner made no investments in the business and no dividends were paid during the year.
b. Owner made no investments in the business, but dividends were $1,250 cash per month.
c. No dividends were paid during the year, but the owner did invest additional $45,000 cash in exchange for common stock.
d. Dividends were $1,250 cash per month and the owner invested additional $25,000 cash in exchange for common stock.
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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a Assets Liabilities Equity Beginning of the year 70000 30000 40000 End of the year 115000 ...View the full answer
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