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The December 31, Year 4, balance sheet for Deen Company showed total stockholders equity of $66,000. Total stockholders equity increased by $25,500 between December 31,
The December 31, Year 4, balance sheet for Deen Company showed total stockholders equity of $66,000. Total stockholders equity increased by $25,500 between December 31, Year 4, and December 31, Year 5. During Year 5, Deen Company acquired $11,500 cash from the issue of common stock. The Company paid a $6,500 cash dividend to the stockholders during Year 5. Required Determine the amount of net income or loss Deen reported on its Year 5 income statement. (Hint: Remember that stock issues, net income, and dividends all change total stockholders equity.)
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