Activity 4.b - Using the Expanded Accounting Equation

Using the expanded accounting equation, calculate and enter the answers for each question. You will need to use the answers you calculate for beginning and ending equity to answer the rest of the questions.

AssetsLiabilitiesBeginning of Year:$29,000$18,000End of Year:$60,000$27,0001) What is the equity at the beginning of the year?

Beginning Equity11,000

2) What is the equity at the end of the year?

Ending Equity33,000

3) If the company issues common stock of $5,200 and pay dividends of $41,100, how much is net income (loss)?

Net Income (Loss)

4) If net income is $2,400 and dividends are $5,100, how much is common stock?

Common Stock

5) If the company issues common stock of $15,200 and net income is $15,400, how much is dividends?

Dividends

6) If the company issues common stock of $42,800 and pay dividends of $2,000, how much is net income (loss)?

Net Income (Loss)