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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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  1. 2 January, 11:48
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    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
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