Crandall Company reported the following amounts on its balance sheet on December 31 of the current year:
Answer each of the following independent questions:
a. Assume that Crandall's stockholders' equity on January 1 was $132,000. Crandall did not issue common stock during the year, but it paid $18,000 cash in dividends. How much is Crandall's net income or loss for the year?
b. Assume that Crandall's stockholders' equity on January 1 was $118,000, and that Crandall issued additional common stock of $35,000 and paid $30,000 in cash dividends before the end of the year. What was Crandall's net income or net loss for the year?

Question

Crandall Company reported the following amounts on its balance sheet on December 31 of the current year:
Answer each of the following independent questions:
  a. Assume that Crandall's stockholders' equity on January 1 was $132,000. Crandall did not issue common stock during the year, but it paid $18,000 cash in dividends. How much is Crandall's net income or loss for the year?
b. Assume that Crandall's stockholders' equity on January 1 was $118,000, and that Crandall issued additional common stock of $35,000 and paid $30,000 in cash dividends before the end of the year. What was Crandall's net income or net loss for the year?

Quizplus · Accepted Answer

The Answer of Crandall Company reported the following amounts on its balance sheet on December 31 of the current year:
Answer each of the following independent questions:
  a. Assume that Crandall's stockholders' equity on January 1 was $132,000. Crandall did not issue common stock during the year, but it paid $18,000 cash in dividends. How much is Crandall's net income or loss for the year?
b. Assume that Crandall's stockholders' equity on January 1 was $118,000, and that Crandall issued additional common stock of $35,000 and paid $30,000 in cash dividends before the end of the year. What was Crandall's net income or net loss for the year?

Crandall Company Reported the Following Amounts on Its Balance Sheet