Question
A company had the following transactions during april.1)Borrowed cash 18000 2)Dividends of $6000 were paid?
in cash. 3) Revenues received in cash 22000. At the beginning of april, owner's equity in the company was 200,000. In light of the above 4 transactions, a) what will be the owners equity at the end of the the month? b) What will be the net income the company will report for the month of april ? 4th transaction was 4)Revenues received 30,000 The Third transaction was 3) Expneses paid in cash 22000
4 weeks ago - 1 answers
Best Answer
Chosen by Asker
1. Dr Cash 18,000 Cr N/P 18,000 2. Dr Dividends 6000 Cr Cash 6000 3 Dr Cash 22000 Cr Sales Rev 22000 I don't see a 4th transaction. a) heavily depends on if the 4th transaction involves an equity account b) net income is Sales Rev - COGS - all other deductible expenses, so the answer would depend on having a lot more information!
by Lil_Dog
4 weeks ago
Asker's Rating: 