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Calculation of net income from the change in stockholders' equity. Presented below is certain information pertaining...

Calculation of net income from the change in stockholders' equity.

Presented below is certain information pertaining to Edson Company. (show your work)

            Assets, January 1                                                                            $250,000

            Assets, December 31                                                                        230,000

            Liabilities, January 1                                                                          150,000

            Common stock, December 31                                                             90,000

            Retained earnings, December 31                                                       41,000

            Common stock sold during the year                                                    10,000

            Dividends declared during the year                                                     13,000

This is all the info given

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Answer #1

Assets, jan 1 = $250,000

Liabilities, Jan 1 = $150,000

Equity, Jan 1 = Assets, jan 1 - Liabilities, Jan 1

= 250,000 - 150,000

= $100,000

Common stock, December 31 = $90,000

Retained earnings, December 31 = $41,000

Equity, Dec 31 = Common stock, December 31 + Retained earnings, December 31

= 90,000 + 41,000

= $131,000

Equity, Dec 31 = Equity, Jan 1 + Common stock sold during the year + Net income - Dividend

131,000 = 100,000 + 10,000 + Net income - 13,000

Net income = $34,000

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