York Casting Services started the year with total assets of $110,000 and total liabilities of $50,000.The revenues and the expenses for the year amounted to $140,000 and $50,000,respectively.During the year,the company did not issue any common stock,but it distributed dividends of $70,000.Calculate the amount of increase or decrease in stockholders' equity for the year.

Question

Quizplus · Accepted Answer

Equity (at the beginning of the year)= $110,000 - $50,000 = $60,000
Equity (at the end of the year)= Equity (beginning balance)- Dividends + Revenues - Expenses
 11ea86d6_841c_9419_92b6_9b10bf8a1775_TB2804_00 Change in stockholders' equity for the
 11ea86d6_841c_bb2a_92b6_51ba69002229_TB2804_00

York Casting Services Started the Year with Total Assets of $110,000