Question
Jack's Construction, Inc. reported the following financial information at January 1, 2021, the beginning of its fiscal year: Assets $385,000 Liabilities 217,000 During 2021, assets
Jack's Construction, Inc. reported the following financial information at January 1, 2021, the beginning of its fiscal year:
Assets $385,000
Liabilities 217,000 During 2021, assets decreased by $11,000 and liabilities decreased by $2,000.
Instructions
- Calculate Jack's total stockholders equity on January 1, 2021.
- Calculate Jacks retained earnings on January 1, 2021. You can assume the only other equity account Jack reports on January 1, 2021 is $2,000 in common stock.
- Calculate Jacks total stockholders equity on December 31, 2021.
- Calculate Jacks retained earnings on December 31, 2021. You can assume the only other equity account Jack reports on December 31, 2021 is $2,000 in common stock.
5. Assume Jack declares dividends declared in 2021 totaling $5,000. Calculate Jacks 2021 net income or loss.
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Intermediate Accounting IFRS
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
3rd edition
1119372933, 978-1119372936
