Accounting homework help

Department of Business Administration and Accounting

BU 216 Finance – Fall 2013

Shareholder Equity Problem (5 “Assigned Work” points)

Due Date and Time

Assignments are to be turned in at my office (JEM 169A) by 11:00 am on Tuesday Sept 10th.

No
late assignments will be accepted.

Requirements

This assignment is to be done individually. No two student deliverables should be the same or even highly similar.

This assignment is to be written out neatly by hand (not using a computer software program, not even Word or Excel).

Points will be deducted for work that is not written out by hand or not easy to follow.

Only hard copy deliverables will be accepted. Electronic submissions will
not
be accepted.

Assignments are to be stapled.

Points will be deducted for assignments in binders, having paper clips or folded corners, etc.

Assignment

Which of the following events are consistent with a change in Shareholder Equity from $50,000 in 2011 to $80,000 in 2012? Be sure to numerically justify your answers.

a. Net income was $30,000 and $10,000 in dividends was paid.

b. Net income was $50,000, stock was repurchased for $10,000, and $10,000 in dividends was paid.

c. Net loss was ($20,000) and stock was sold for $50,000.

d. Net income was $60,000, stock was sold for $10,000 and $40,000 in dividends was paid.

e. Net income was $0, stock was issued for $45,000, and $10,000 in dividends was paid.