Ashley's Accessory Shop started the month of June 2022 with total assets of $210,000 and total liabilities of $120,000.During June, the business recorded $330,000 in revenues, $165,000 in expenses, and dividends of $60,000.Stockholders' equity at the end of June was
A)$180,000.
B)$165,000.
C)$195,000.
D)$105,000.

Question

Quizplus · Accepted Answer

Stockholders' equity at the beginning of June was $90,000 ($210,000 assets - $120,000 liabilities). During June, net income was $165,000 ($330,000 revenues - $165,000 expenses). After paying $60,000 in dividends, the stockholders' equity increased by $105,000 ($165,000 net income - $60,000 dividends). Therefore, stockholders' equity at the end of June was $195,000 ($90,000 + $105,000).

Ashley's Accessory Shop Started the Month of June 2022 with Total