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Beginning Common Stock balance is $40,000, beginning Retained Earnings balance is $50,000, investments through stock issuances are $20,000, net income is $30,000, and dividends are $10,000. What is total ending equity?

Respuesta :

Answer:

$130,000

Explanation:

Given that,

Beginning Common Stock balance = $40,000,

Beginning Retained Earnings balance = $50,000,

Investments through stock issuance = $20,000,

Net income = $30,000

Dividends = $10,000

Ending retained earnings:

= Beginning retained earnings + Net income - Dividends

= $50,000 + $30,000 - $10,000

= $70,000

Total ending equity:

= Beginning Common Stock balance + Investments through stock issuance + Ending retained earnings

= $40,000 + $20,000 + $70,000

= $130,000

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