Stahl Consulting started the year with total assets of $60,000 and total liabilities of $15,000.During the year, the business recorded $48,000 in catering revenues and
$30,000 in expenses.Stahl issued stock of $9,000 and paid dividends of $15,000 during
The year.The net income reported by Stahl Consulting for the year was:

Question

Quizplus · Accepted Answer

To find the net income, we need to subtract the total expenses from total revenues: $48,000 - $30,000 = $18,000. 
Then, we add the change in equity: $9,000 (issued stock) - $15,000 (dividends) = -$6,000. 
Finally, we add the beginning equity: $60,000 - $15,000 = $45,000.

Net Income = $18,000 - $6,000 + $45,000 = $57,000

Therefore, the net income reported by Stahl Consulting for the year was $18,000 (Choice C).

Stahl Consulting Started the Year with Total Assets of $60,000