Toth began business on January 1, 2019, with an investment of $100,000 from stockholders. From an analysis of the change in stockholders’ equity during the year, compute the net income (or loss) for: (a) 2019, assuming Toth paid $15,000 in dividends for the year. Net income (loss) for 2019 $enter the Net income (loss) for 2019 in dollars (b) 2020, assuming stockholders made an additional investment of $50,000 and Toth paid no dividends in 2020. Net income (loss) for 2020 $enter the Net income (loss) for 2020 in dollars (c) 2021, assuming stockholders made an additional investment of $15,000 and Toth paid dividends of $30,000 in 2021. Net income (loss) for 2021 $enter the Net income (loss) for 2021 in dollars

Respuesta :

Answer:

a. Net income for 2019 = $55,000

b. Net loss for 2020 = -$10,000

c. Net income for 2021 = $25,000

Explanation:

a. Stockholders' equity 31-12-2019

Total assets - Total liabilities

= $400,000 - $260,000

= $140,000

Shareholder equity = $100,000

Increase in stockholders' equity = $140,000 - $100,000

= $40,000

Net loss for 2019 = Additional investment + Dividend

= $40,000 + $15,000

= $55,000

b. Stockholders' equity—31-12-2020

Total assets - Total liabilities

= $480,000 - $300,000

= $180,000

= Stockholders' equity (a) = $140,000

Increase in stockholders' equity =  $180,000 - $140,000

= $40,000

Additional investment = $50,000

Net loss for 2020 = Additional investment + Dividend

$40,000 - $50,000

= -$10,000

c. Stockholders' equity—31-12-2021

Total assets - Total liabilities

= $590,000 - $400,000

= $190,000

Stockholders' equity (b) = $180,000

Increase in stockholders' equity = $190,000 - $180,000

= $10,000

Additional investment = $15,000

= $10,000 - $15,000

= -$5,000

Dividend = $30,000

Net Income for 2021 = Additional investment + Dividend

= -$5000 + $30,000

= $25,000

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