The December 31, Year 1, balance sheet for Deen Company showed total stockholders' equity of $65,500. Total stockholders' equity increased by $33,000 between December 31, Year 1, and December 31, Year 2.
During Year 2, Deen Company acquired $13,500 cash from the Issue of common stock. Deen Company paid a $6,000 cash dividend to the stockholders during Year 2.
Determine the amount of net income or loss Deen reported on its Year 2 income statement.
Revenue is the total earnings by a company from its business activities, and the net revenue is the earnings which are calculated by removing all the liabilities of the business from its gross revenue.
Answer and Explanation:
|Stockholder's Equity on December 31,Year 2 ($33,000 + $65,500)||98,500|
|Less: Stockholder's Equity on December 31,Year 1||65,000|
|Less: Shares Issued||13500|
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from OSAT Business Education (CEOE) (040): Practice & Study GuideChapter 69 / Lesson 5