The Constantine Company had the following assets and liabilities on the dates indicated. Constantine began business on January 1, 2017, with an investment of $100,000.
Instructions
From an analysis of the change in stockholders' equity during the year, compute the net income (or loss) for:
(a) 2017, assuming Constantine's dividends were $45,000 for the year.
(b) 2018, assuming Constantine made an additional investment of $50,000 and paid no dividends in 2018.
(c) 2019, assuming Constantine made an additional investment of $15,000 and paid dividends of $40,000 in 2019.

Question

The Constantine Company had the following assets and liabilities on the dates indicated.  Constantine began business on January 1, 2017, with an investment of $100,000.
Instructions
From an analysis of the change in stockholders' equity during the year, compute the net income (or loss) for:
(a) 2017, assuming Constantine's dividends were $45,000 for the year.
(b) 2018, assuming Constantine made an additional investment of $50,000 and paid no dividends in 2018.
(c) 2019, assuming Constantine made an additional investment of $15,000 and paid dividends of $40,000 in 2019.

Quizplus · Accepted Answer

The Answer of The Constantine Company had the following assets and liabilities on the dates indicated.  Constantine began business on January 1, 2017, with an investment of $100,000.
Instructions
From an analysis of the change in stockholders' equity during the year, compute the net income (or loss) for:
(a) 2017, assuming Constantine's dividends were $45,000 for the year.
(b) 2018, assuming Constantine made an additional investment of $50,000 and paid no dividends in 2018.
(c) 2019, assuming Constantine made an additional investment of $15,000 and paid dividends of $40,000 in 2019.

The Constantine Company Had the Following Assets and Liabilities on the Dates