1. Baltimore Company experienced a total increase in stockholders' equity of $27,000 during the current year. Stockholders' equity was increased by additional issuances of $56,000 capital stock during the year. No dividends were paid. Expenses incurred during the year were $120,000. How much was Baltimore's revenue for the year?

2. Baltimore Company experienced an increase in total assets of $10,500 during the current year. During the same time period, total liabilities increased $8,100. Shareholders made no investments during the year and no dividends were paid. How much was Baltimore's net income?

Question

Business

Mireya Rasmussen

2 January, 11:05

1. Baltimore Company experienced a total increase in stockholders' equity of $27,000 during the current year. Stockholders' equity was increased by additional issuances of $56,000 capital stock during the year. No dividends were paid. Expenses incurred during the year were $120,000. How much was Baltimore's revenue for the year?

2. Baltimore Company experienced an increase in total assets of $10,500 during the current year. During the same time period, total liabilities increased $8,100. Shareholders made no investments during the year and no dividends were paid. How much was Baltimore's net income?

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Answers (1)

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Elliot Schultz · Answer 1

1) 91,000 revenues

2) 2,400 income

Explanation:

increase from shares + 56,000

ncrease from revneues X

decrease from expense - 120,000

total increase + 27,000

the revenues where for

270,00 + 120,000 - 56,000 = 91,000

Assets increase 10,500

Liabilities increase for 8,100

Equity incrase according to accounting equation:

Assets = liab + equity

10,500 = 8,100 + equity

equity = 2,400

there is no dividends or share issuance nor treasury stock thus, all this variacion is explained through net income