Ask Question
24 September, 19:34

Saira's Maid Service began the year with total assets of $120,000 and stockholders' equity of $40,000. During the year the company earned $90,000 in net income and paid $20,000 in dividends. The company did not issue any additional shares of stock during the year. Total assets at the end of the year were $215,000. How much was stockholders' equity at the end of the year?

+1
Answers (1)
  1. 24 September, 22:56
    0
    Stockholders' equity at the end of the year was $110,000.

    Explanation:

    Beginning Balance of Stockholder's Equity = $40,000

    Net Income for the year = $90,000

    Dividend declared in the year = $20,000

    Ending Balance of Stockholder's Equity = Beginning Balance of Stockholder's Equity + Net Income for the year - Dividend declared in the year

    Ending Balance of Stockholder's Equity = $40,000 + $90,000 - $20,000

    Ending Balance of Stockholder's Equity = $110,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Saira's Maid Service began the year with total assets of $120,000 and stockholders' equity of $40,000. During the year the company earned ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers