Shep Company's records show the following information for the current year.
Beginning of year End of year
Total assets $50,000 $80,000
Total liabilities $22,000 $35,000
Determine net income (loss) for each of the following separate situations. (For all requirements, losses should be entered with a minus sign.)
a. Additional common stock of $3,000 was issued and dividends of $7,000 were paid during the current year.
b. Additional common stock of $15,000 was issued and no dividends were paid during the current year.
c. No additional common stock was issued and dividends of $12,000 were paid during the current year.
a. Net income (loss) $ 49,000
b. Net income (loss) $ 30,000
c. Net income (loss) $ 57,000
