At the beginning of the current fiscal year, the balance sheet for Davis Co. showed...
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Accounting
At the beginning of the current fiscal year, the balance sheet for Davis Co. showed liabilities of $256,000. During the year liabilities decreased by $14,400, assets increased by $52,000, and paid-in capital increased from $24,000 to $153,600. Dividends declared and paid during the year were $20,000. At the end of the year, stockholders equity totaled $343,200.
Required:
Calculate net income (or loss) for the year. (Negative amounts should be indicated by a minus sign.)
Stockholders Equity
Assets
=
Liabilities
+
PIC
+
RE
Beginning:
=
$256,000
+
24,000
+
Changes:
52,000
=
(14,400)
+
+
Ending:
=
+
153,600
+
($343200 total SE)
Statement of Stockholders' Equity
Retained earnings, beginning
Less: Net loss
Less: Dividends
Retained earnings, ending
$0
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