Black Keys Company began the year with stockholders' equity of $280,000.During the year, the company recorded revenues of $375,000, expenses of $285,000, and paid dividends of $30,000.What was Black Keys' stockholders' equity at the end of the year?

Question

Quizplus · Accepted Answer

The net income for the year is calculated as revenues minus expenses, which is $375,000 - $285,000 = $90,000. The ending stockholders' equity is the beginning equity plus net income minus dividends paid, which is $280,000 + $90,000 - $30,000 = $340,000.

Black Keys Company Began the Year with Stockholders' Equity of $280,000.During