E1–5 a. $160,000 ($70,000 + $90,000) b. $77,000 ($95,000 $18,000) – c. $448,000 ($675,000 $227,000) – E1–6 a. $12,361 ($27,140 $14,779) – b. $30,809 ($46,630 $15,821) – c. $193,406 ($117,645 + $75,761) E1–7 It would be incorrect to say that the business had incurred a net loss of $10,000. The excess of the dividends over the net income for the period is a decrease in the amount of retained earnings in the business. E1–8 Company Stockholders’ equity at end of year($900,000 $300,000) $600,000 – Stockholders’ equity at beginning of year($775,000 $400,000) 375,000 – Net income (increase in stockholders’ equity) $225,000 Company Henry Increase in stockholders’ equity (as determined for Chang) Add dividends 90,000 Net income $315,000 Company Nagel Increase in stockholders’ equity (as determined for Chang) Deduct additional issuance of capital stock 125,000 Net income Company Wilcox Increase in stockholders’ equity (as determined for Deduct additional issuance of capital stock 125,000
E1–5 a. $160,000 ($70,000 + $90,000) b. $77,000 ($95,000 – $18,000) c. $448,000 ($675,000 – $227,000) E1–6 a. $12,361 ($27,140 – $14,779) b. $30,809 ($46,630 – $15,821) c. $193,406 ($117,645 + $75,761) E1–7 It would be incorrect to say that the business had incurred a net loss of $10,000. The excess of the dividends over the net income for the period is a decrease in the amount of retained earnings in the business. E1–8 Company Stockholders’ equity at end of year($900,000 – $300,000) $600,000 Stockholders’ equity at beginning of year($775,000 – $400,000) 375,000 Net income (increase in stockholders’ equity) $225,000 Company Henry Increase in stockholders’ equity (as determined for Chang) Add dividends 90,000 Net income $315,000 Company Nagel Increase in stockholders’ equity (as determined for Chang) Deduct additional issuance of capital stock 125,000 Net income Company Wilcox Increase in stockholders’ equity (as determined for Deduct additional issuance of capital stock 125,000
Solution-Manual-for-Survey-of-Accounting-7th-Edition-by-Warren.docx