Respuesta :
Answer:
a.Stockholders equity as at October 31, 20Y2.
Equity = $3,650,000
b. Stockholders equity as at October 31, 20Y3
Equity = $4,120,000
c. Stockholders equity as at October 31, 20Y3.
Equity = $2,910,000
d.Stockholders equity as at October 31, 20Y3.
Equity = $4,180,000
e. Net Income as at October 2OY3
Net Income = $540,000
Explanation:
Accounting equation equate asset with liabilities and equity:
Assets = Liaibilities + Equity.
With this formula, any of the missing value can be derived mathematically.
To get equity, the item will be rearranged as follows:
Equity = Asset - Liabilities
a. Stockholders equity as at October 31, 20Y2.
Equity = $5,250,000 - $1,600,000
Equity = $3,650,000
b. Stockholders equity as at October 31, 20Y3
Increase in asset of $800,000 and increase in liabilities of $330,000
Equity = ($5,250,000 +$800,000) - ($1,600,000 + $330,000)
Equity = $6,050,000 - $1,930,000
Equity = $4,120,000
c. Stockholders equity as at October 31, 20Y3.
Assuming that assets decreased by $600,000 and liabilities increased by $140,000
Equity =( $5,250,000 - $600,000) - ($1,600,000 + $140,000)
Equity = $4,650,000 - $1,740,000
Equity = $2,910,000
d. Stockholders equity as at October 31, 20Y3.
assuming that assets increased by $440,000 and liabilities decreased by $90,000
Equity = ($5,250,000+$440,000) - ($1,600,000 -$90,000)
Equity = $5,690,000 - $1,510,000
Equity = $4,180,000
e. Net Income as at October 2OY3
Net income (or net loss) during 20Y3, assuming that as of October 31, 20Y3, assets were $6,140,000, liabilities were $1,950,000, and no additional common stock was issued or dividends paid
Net income = Closing equity - opening equity.
Closing equity:
= $6,140,000 - $1,950,000
= $4,190,000
Opening equity as at October 31, 20Y2 = $3,650,000
Net Income = $4,190,000 -$3,650,000
Net Income = $540,000
