Review exercise-calculate net income. At the beginning of the current fiscal year, the balance sheet of Cummings

Question:

Review exercise-calculate net income. At the beginning of the current fiscal year, the balance sheet of Cummings Co. showed liabilities of $438,000. During the year, liabilities decreased by $72,000; assets increased by $154,000; and paid-in capital increased by $20,000 to $380,000. Dividends declared and paid during the year were $124,000. At the end of the year, stockholders' equity totaled $758,000.


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...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Accounting What the Numbers Mean

ISBN: 978-0078025297

10th edition

Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele

Question Posted: