accounting class help!
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Post Fiend
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accounting class help!
i am taking an online accounting class, need help with this question.
the total assests and the total liabilities of a particular business enterprise at the beginning and at the end of the year are stated below. during the year, dividends of $30,000 were paid, and additional capital stock of $25,000 was issued.
assets liabilities
beginning of the year $290,000 $190,000
end of the year 355,000 220,000
the amount of net income for the year was????
i am not the greatest with math but can understand if someone shows it first, need help!
thanks.
the total assests and the total liabilities of a particular business enterprise at the beginning and at the end of the year are stated below. during the year, dividends of $30,000 were paid, and additional capital stock of $25,000 was issued.
assets liabilities
beginning of the year $290,000 $190,000
end of the year 355,000 220,000
the amount of net income for the year was????
i am not the greatest with math but can understand if someone shows it first, need help!
thanks.
Posting Guru
Joined: May 2004
Posts: 2,223
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From: Billings Montana
Your'e not the greatest at math, and your'e taking an accounting class? Seems kinda strange to me. I'm horrible at math so I can't be any help to you, but hey who knows, maybe there's room in my future as a CPA too! 
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Post Fiend
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well, i am not horrible, accounting really is just basic math, its just the order that confuses me a bit, plus trying to read through the text book.....
but i came up with $30,000, i need someone to confirm if it is right.
though business admin is my major for the AS degree, the business field will not be for my bachelors.
but i came up with $30,000, i need someone to confirm if it is right.
though business admin is my major for the AS degree, the business field will not be for my bachelors.
Posting Guru
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From: Wolfforth
i just completed my first online accounting class about three weeks ago... i slept through it and don't know how i got my grade! prolly cuz she liked the papers she made us write...
i'll look it up in my book and see if i can't come up with an answer becuz honestly, i've slept since the final and remember just about NOTHING... what text are you using? wldn't happen to be warren, reeve, and duchac accounting 22 edition wld it? if so give me the chapter and problem or exercise numbers cuz our prof gave us the answers to the first 12 chapters. if you wanna im you can catch me on aim or yahoo either one under the same name i'm using on here...
i'll look it up in my book and see if i can't come up with an answer becuz honestly, i've slept since the final and remember just about NOTHING... what text are you using? wldn't happen to be warren, reeve, and duchac accounting 22 edition wld it? if so give me the chapter and problem or exercise numbers cuz our prof gave us the answers to the first 12 chapters. if you wanna im you can catch me on aim or yahoo either one under the same name i'm using on here...
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Post Fiend
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i am actually sitting here wondering why i am even taking them, i am not even going to be in the business field, i am going to major in political science, i just didn't want a general education diploma, but i am thinking that this stuff is going to start effecting my gpa and effect me getting selected for things in the future.
i will see, i still can withdraw from this course with no problem, but i will just talk to my advisor on monday, he is a real good guy.
i am just very weak at math, i can write all day long about something, or read and look up obscure things with no problem, but put math in front of me i am like a lost puppy.
its a wonder how i even got through the Navy electronic courses, oh yes, i am good at troubleshooting, thats the only reason.
i will see, i still can withdraw from this course with no problem, but i will just talk to my advisor on monday, he is a real good guy.
i am just very weak at math, i can write all day long about something, or read and look up obscure things with no problem, but put math in front of me i am like a lost puppy.
its a wonder how i even got through the Navy electronic courses, oh yes, i am good at troubleshooting, thats the only reason.
Posting Guru
Joined: Mar 2002
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From: Wolfforth
yeah once i reread that question, i think you're prolly further ahead cuz we weren't dealing with dividends and stock yet. that's chapter 13 where that starts and the first semester only goes through 12. i wont get into that till august. good luck though.. once you know you got it if you dont mind shoot it to me so i can put 2 and 2 together... my classes are online too so it's not like i can't get a little ahead so i might actually know some of it by the time i start back up.
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Cargo Master
Joined: Jul 2005
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From: Not as far west as I want
I councour with the 30,000 the issue of stock is my answer. The dividend and issuence of capitol stock is already figured into the assets and liabilities. - I think.
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From: Melbourne, Aus
Originally Posted by bf250
the total assests and the total liabilities of a particular business enterprise at the beginning and at the end of the year are stated below. during the year, dividends of $30,000 were paid, and additional capital stock of $25,000 was issued.
assets liabilities
beginning of the year $290,000 $190,000
end of the year 355,000 220,000
the amount of net income for the year was????
assets liabilities
beginning of the year $290,000 $190,000
end of the year 355,000 220,000
the amount of net income for the year was????
Now, at the start of the year you had 290k in assets, 190k in liabilities.
What does that mean? You had 100k in equity too...
Ok, at the end of the year, the 30k dividend was taken out of both the cash and the proprietorship (i.e. equity), but you also have the additional 25k which was raised, which gets put into cash, and added to proprietorship.
So, the net change here was 5k removed. (which means you need to add a further 5k later... I will explain)
Now, you are looking for the profit - i.e. the change over the year.
You have added a total of 65k in assets (355k-290k)
However you have also added 30k in liabilities (220k-190k)
This means a net change of 35k, PLUS the 5k net that was removed in the form of a dividend.
40k profit
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Post Fiend
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thanks BigF350, now i got it.
on the advice of professionals and friends, i will probably end up dropping this class, switching to a general transfer major so i can ensure my gpa stays high. i am horrible at math and i have spent more time on these 2 chapters of accounting then i have the other 3 classes i am in writing papers and reading. i am going to major in political science anyway and planning either getting picked up on an internship with the gov or going onto law school. so i want to make sure my gpa stays high as possible.
i can write ten quick pages over a court ruling, but put 2 + 2 in front of me, my brain goes crazy!
on the advice of professionals and friends, i will probably end up dropping this class, switching to a general transfer major so i can ensure my gpa stays high. i am horrible at math and i have spent more time on these 2 chapters of accounting then i have the other 3 classes i am in writing papers and reading. i am going to major in political science anyway and planning either getting picked up on an internship with the gov or going onto law school. so i want to make sure my gpa stays high as possible.
i can write ten quick pages over a court ruling, but put 2 + 2 in front of me, my brain goes crazy!
Gone but not forgotten.
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Accounting math is very basic, if you can understand the applications the math should be no problem. That said, I remember an accounting test in college where I was off balance by 37 cents. As time ran out, I scotch-taped a quarter, dime and 2 cents to my paper and turned it in. When I got the graded paper back, the money was gone and "Nice try" was in red letters across the top.
I also found out that having a sister that was a CPA helped a lot.
I also found out that having a sister that was a CPA helped a lot.
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From: DELAWARE, The First State
Originally Posted by BigF350
Ok - you have your balance sheet here right.
Now, at the start of the year you had 290k in assets, 190k in liabilities.
What does that mean? You had 100k in equity too...
Ok, at the end of the year, the 30k dividend was taken out of both the cash and the proprietorship (i.e. equity), but you also have the additional 25k which was raised, which gets put into cash, and added to proprietorship.
So, the net change here was 5k removed. (which means you need to add a further 5k later... I will explain)
Now, you are looking for the profit - i.e. the change over the year.
You have added a total of 65k in assets (355k-290k)
However you have also added 30k in liabilities (220k-190k)
This means a net change of 35k, PLUS the 5k net that was removed in the form of a dividend.
40k profit
Now, at the start of the year you had 290k in assets, 190k in liabilities.
What does that mean? You had 100k in equity too...
Ok, at the end of the year, the 30k dividend was taken out of both the cash and the proprietorship (i.e. equity), but you also have the additional 25k which was raised, which gets put into cash, and added to proprietorship.
So, the net change here was 5k removed. (which means you need to add a further 5k later... I will explain)
Now, you are looking for the profit - i.e. the change over the year.
You have added a total of 65k in assets (355k-290k)
However you have also added 30k in liabilities (220k-190k)
This means a net change of 35k, PLUS the 5k net that was removed in the form of a dividend.
40k profit
Net Equity did change by +$35,000 for the year.
Equity at the beginning of the year $100,000
Net income for the year ended......... 40,000 Your Answer
Add additional capital during the yr.. 25,000
Sub-Total..................................... 165.000
Less Dividends paid during the year (30,000)
Equity at the end of the year.......... $135,000
I have the credentials to prove it. You should have told them you are an accounting professor during the day. lol
Last edited by glruff; Jun 3, 2007 at 01:55 PM.