Victor Services had the following assets and liabilities at the beginning and end of the current year:
If $12,000 of common stock was issued during the year,but no dividends were paid during the year,what was the amount of net income earned by Victor Services?

Question

Victor Services had the following assets and liabilities at the beginning and end of the current year:

If $12,000 of common stock was issued during the year,but no dividends were paid during the year,what was the amount of net income earned by Victor Services?

Mounika Uppala · Accepted Answer

Final Answer :

Beginning equity = $114,000 - $68,000 = $46,000
Ending equity = $135,000 - $73,000 = $62,000
Increase in equity including stock issuance = $62,000 - $46,000 = $16,000
Net income = $16,000 - $12,000 = $4,000

Victor Services had the following assets and liabilities at the beginning and end of the current year:
If $12,000 of common stock was issued during the year,but no dividends were paid during the year,what was the amount of net income earned by Victor Services?

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