At the start of the year, Gershon, Inc. had total shareholders' equity = $12,000. If net income during the year was a $200 loss, dividends paid = $400, and $1,000 was raised from the sale of new stock,
What is the end of year value for total shareholders' equity?

Question

Quizplus · Accepted Answer

The end of year shareholders' equity is calculated as: Starting equity ($12,000) - Net loss ($200) - Dividends paid ($400) + New stock issued ($1,000) = $12,400.

At the Start of the Year, Gershon, Inc