At the beginning of the current fiscal year, the balance sheet of Cummings Co. showed liabilities of

Question:

At the beginning of the current fiscal year, the balance sheet of Cummings Co. showed liabilities of $876,000. During the year, liabilities decreased by $144,000; assets increased by $308,000; and paid-in cap-ital increased by $40,000 to $760.000. Dividends declared and paid during the year were $248,000. At the end of the year. Stockholders' equity totaled $1,516,000.

Required:

Calculate net income or loss for the year using the same format as shown in Exercise 8.5.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...