Puppet Corporation began with an investment by shareholders of $20,000.

a. In the first year, its income earned @2,000. What would the equity section of its balance sheet show?

b. In the second year, it had income of $9,000 and dividend of $3,000 was paid. what would the equity section of its balance sheet show?

c. In the third year, Puppet sold more shares for a value of $10,000, earned income of $5,000 and paid a dividend of $2,500. What would the equity section of its balance sheet?