The balance sheet data for Angel's Countertops, Inc.at August 31, 2016, and September 30, 2016, follow: Requirement
Question:
The balance sheet data for Angel's Countertops, Inc.at August 31, 2016, and September 30, 2016, follow:
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Requirement
1. The following are three independent assumptions about the business during September. For each assumption, compute the amount of net income or net loss during September 2016. Find the solution by preparing the statement of retained earnings. First, use the amounts of total assets, total liabilities, and common stock given previously and the accounting equation to determine the beginning and ending retained earnings amounts. Then, plug those and the other amount given in each assumption into the statement of retained earnings to determine the net income or net loss.
a. The business paid no dividends.
b. The business paid $10,000 of dividends.
c. The business paid $16,000 of dividends.
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...
Step by Step Answer:
Aug 31 2016 Sept 30 2016 Total assets 105000 180000 Total liab...View the full answer
