Alan Lightwork's balance sheet data at May 31, 2018, and June 30, 2018, follow:
(Click the icon to view the balance sheet data.)
Read the requirement.
Begin by identifying the accounting equation and the formula to calculate the change in the stockholders' equity during a period. (Abbreviations used: Beg. equity = beginning equity; End. equity = ending equity.)
Accounting equation:
Assets = Liabilities + Equity
Stockholders' equity equation:
Beg. equity + Common stock issued + Net income or - Net loss - Dividends = End. equity
For each of the following situations that occurred in June, 2018 with regard to common stock and dividends of a corporation, compute the amount of net income or net loss during June 2018. (Use a minus sign or parentheses for a net loss.)
a. The company issued $18,000 of common stock and paid no dividends.
Net income (loss) = $
Data Table
May 31, 2018
June 30, 2018
Total Assets
$
222,000
$
255,000
Total Liabilities
144,000
111,000
Check Answer
2
parts
remaining
Requirement
For each of the following situations that occurred in June, 2018 with regard to common stock and dividends of a corporation, compute the amount of net income or net loss during June 2018.
a. The company issued $18,000 of common stock and paid no dividends.
b. The company issued no common stock. It paid cash dividends of $9,000.
c. The company issued $10,000 of common stock and paid cash dividends of $25,000.
