Nigiri inc.began operations on October 1, 2011.During October, Nigiri sold ordinary shares for ¥220,000,000, earned net income of ¥32,000,000, and paid dividends of ¥989,000.Equity at the end of October is

Question

Quizplus · Accepted Answer

Equity = Total assets - Total liabilities
Since no information is given about total assets or liabilities, we can calculate equity based on the information provided:
Equity at beginning of month = 0 (since the company began operations on October 1)
Equity at end of month = Equity at beginning of month + Net income - Dividends + Issuance of ordinary shares
= 0 + ¥32,000,000 - ¥989,000 + ¥220,000,000
= ¥251,011,000

Nigiri Inc