Leno Corporation reported the following amounts for assets and liabilities at the beginning and end of a recent year.
....................Beginning of Year.......... End of Year
Assets............... $256,500 ...................$358,200
Liabilities .............92,650 .....................121,900
Required:
Calculate Leno's net income or net loss for the year in each of the following independent situations:
1. Leno declared no dividends, and its common stock remained unchanged.
2. Leno declared no dividends and issued additional common stock for $15,000 cash.
3. Leno declared dividends totaling $10,000, and its common stock remained unchanged.
4. Leno declared dividends totaling $12,000 and issued additional common stock for $20,000.