Sing Tao inc. began operations on June 2, 2014. During June, Sing Tao sold ordinary shares for HK$17,175,000, earned revenue of HK$3,030,000, incurred expenses of HK$1,545,000, and paid dividends of HK$45,000. Equity at the end of June is
A) HK$1,440,000.
B) HK$1,485,000.
C) HK$18,615,000.
D) HK$20,205,000.

Question

Quizplus · Accepted Answer

Equity at the end of June can be calculated as:
Equity = (Total amount of equity issued + Revenue - Expenses - Dividends paid)
= (HK$17,175,000 + HK$3,030,000 - HK$1,545,000 - HK$45,000)
= HK$18,615,000. Therefore, the correct answer is C.

Sing Tao Inc