Balance sheet information of Digital Solutions, Inc. at December 31, 2016, is provided below.
$\begin{array}{lr}
\text { Assets } & \$ 100,000 \
\text { Liabilities } & 34,000 \
\text { Shareholders' equity } & 66,000
\end{array}$

During 2017, the company entered into the following transactions:
1. Common stock was issued for $ \$ 12,000 $ cash.
2. Services were performed for $ \$ 45,000 $ cash.
3. Cash expenses of $ \$ 31,000 $ were incurred.
4. Long-term liabilities of $ \$ 18,000 $ were paid.
5. The market value of an available-for-sale investment owned at yearend exceeded its cost by $ \$ 6,000 $.
6. Dividends of $ \$ 9,000 $ were declared and paid.

A. Which transactions are operating?
B. Compute net income for the year ending December 31, 2017.
C. Compute comprehensive income for the year ending December 31, 2017.

Question

Balance sheet information of Digital Solutions, Inc. at December 31, 2016, is provided below.
 $\begin{array}{lr}
\text { Assets } & \$ 100,000 \
\text { Liabilities } & 34,000 \
\text { Shareholders' equity } & 66,000
\end{array}$
 
During 2017, the company entered into the following transactions:
 1. Common stock was issued for $ \$ 12,000 $ cash.
2. Services were performed for $ \$ 45,000 $ cash.
3. Cash expenses of $ \$ 31,000 $ were incurred.
4. Long-term liabilities of $ \$ 18,000 $ were paid.
5. The market value of an available-for-sale investment owned at yearend exceeded its cost by $ \$ 6,000 $.
6. Dividends of $ \$ 9,000 $ were declared and paid.
 
A. Which transactions are operating?
B. Compute net income for the year ending December 31, 2017.
C. Compute comprehensive income for the year ending December 31, 2017.

Quizplus · Accepted Answer

The Answer of Balance sheet information of Digital Solutions, Inc. at December 31, 2016, is provided below.
 $\begin{array}{lr}
\text { Assets } & \$ 100,000 \
\text { Liabilities } & 34,000 \
\text { Shareholders' equity } & 66,000
\end{array}$
 
During 2017, the company entered into the following transactions:
 1. Common stock was issued for $ \$ 12,000 $ cash.
2. Services were performed for $ \$ 45,000 $ cash.
3. Cash expenses of $ \$ 31,000 $ were incurred.
4. Long-term liabilities of $ \$ 18,000 $ were paid.
5. The market value of an available-for-sale investment owned at yearend exceeded its cost by $ \$ 6,000 $.
6. Dividends of $ \$ 9,000 $ were declared and paid.
 
A. Which transactions are operating?
B. Compute net income for the year ending December 31, 2017.
C. Compute comprehensive income for the year ending December 31, 2017.