Ans: N/A, LO: 3, Bloom: AN, Difficulty: Medium, Min: 10, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: Problem Solving, IMA: Reporting
Solution 216
Corporation A ($50,000)
Beginning stockholders’ equity ($410,000 - $250,000) $160,000
Additional investments ($180,000 + $70,000 - $160,000 - $40,000) 50,000*
Net income for year ($195,000 - $155,000) 40,000
250,000
Less dividends 70,000
Ending stockholders’ equity ($460,000 - $280,000) $180,000
*End. stock. equity + Div. + Rev. – Exp.– Beg. stock. equity
Corporation B ($182,000)
Beginning stockholders’ equity ($150,000 - $115,000) $ 35,000
Additional investments 79,000
Net income for year ($182,000 - $113,000) 69,000
*[Revenues = $182,000 ($113,000 + $69,000)] 211,000
Less dividends 83,000
Ending stockholders’ equity ($195,000 - $95,000) $100,000
*End. stock. equity + Div. – Add. invest. – Beg. stock. equity + Exp.
Corporation C ($79,000)
Beginning stockholders’ equity ($199,000 - $166,000) $ 33,000
Additional investments 78,000
Net income for year ($187,000 - $183,000) 4,000
115,000
Less dividends ($115,000 - $36,000) 79,000*