Monday, July 11, 2011
Accounting homework question?
So here is my question for you accounting guru’s – I have this problem as part of my hw – I have looked at it left and right and can’t seem to find out how the answer comes out to 65,000. Any assistance would be greatly appreciated. AL Shea is a stockholder and operator of Sawtooth Co. As of the end of its accounting period, December 31, 2007, Sawtooth Company has assets of $925,000 and liabilities of $285,000. During 2008, Al Shea invested an additional $50,000 in exchange for capital stock and was paid dividends in the amount of $30,000.00 from the business. What is the amount of of net income during 2008, assuming that as of December 31, 2008, assets were 980,000, and liabilities were $255,000. The answer is $65,000.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment