Four different corporations, E, F, G, and H, show the same balance sheet data at the beginning

Question:

Four different corporations, E, F, G, and H, show the same data at the beginning and end of a year. These data, exclusive of the amount of stockholders€™ equity, are summarized as follows:

On the basis of the above data and the following additional information for the year, determine the net income (or loss) of each company for the year. (Suggestion: First determine the amount of increase or decrease in stockholders€™ equity during the year.)
Company E: No additional capital stock was issued, and no dividends were paid.
Company F: No additional capital stock was issued, but dividends of $40,000 were paid.
Company G: Capital stock of $60,000 was issued, but no dividends were paid.
Company H: Capital stock of $60,000 was issued, and dividends of $40,000 werepaid.

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...