The December 31, Year 1, balance sheet for James Company showed total stockholders equity of $156,000. Total

Question:

The December 31, Year 1, balance sheet for James Company showed total stockholders’ equity of $156,000. Total stockholders’ equity increased by $65,000 between December 31, Year 1, and December 31, Year 2. During Year 2, James Company acquired $20,000 cash from the issue of common stock. James Company paid a $5,000 cash dividend to the stockholders during Year 2.

Required
Determine the amount of net income or loss James Company reported on its Year 2 income statement.

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... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...

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