Question 1 Newman Corporation began 2017 with total assets o

Question 1 Newman Corporation began 2017 with total assets of $450.000 and total liabilities of $275,000. During 2017, it recorded $1 40000 in revenues and $85,000 in n\'s owner\'s equity at the end of the year? Near the end of the year, Newman issued stock of $100.000 and paid a dividend of $65,000 What is Newma Next

Solution

Answer to Question 1.

Beginning Equity = Beginning Total Assets - Beginning Total Liabilities
Beginning Equity = $450,000 - $275,000
Beginning Equity = $125,000

Ending Equity = Beginning Equity + Revenue - Expenses + Stock issued - Dividend paid
Ending Equity = $125,000 + $140,000 - $85,000 + $100,000 - $65,000
Ending Equity = $215,000