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1. Baltimore Company experienced a total increase in stockholders' equity of $27,000 during the current year. Stockholders' equity was increased by additional issuances of $56,000 capital stock during the year. No dividends were paid. Expenses incurred during the year were $120,000. How much was Baltimore's revenue for the year?
2. Baltimore Company experienced an increase in total assets of $10,500 during the current year. During the same time period, total liabilities increased $8,100. Shareholders made no investments during the year and no dividends were paid. How much was Baltimore's net income?

Respuesta :

TomShelby

Answer:

1)    91,000 revenues

2)    2,400 income

Explanation:

increase from shares         +56,000

ncrease from revneues          X

decrease from expense    -120,000

total increase                       + 27,000

the revenues where for

270,00 + 120,000  - 56,000 = 91,000

Assets increase        10,500

Liabilities increase for 8,100

Equity incrase according to accounting equation:

Assets = liab + equity

10,500 = 8,100 + equity

equity = 2,400

there is no dividends or share issuance nor treasury stock thus, all this variacion is explained through net income

Tundexi

1. Baltimore's revenue for the year is $91,000.

2. Baltimore's net income is $2,400.

Computation of Revenue

Particulars                                         Amount

Total Increase in Equity                   $27,000

Increased by Additional Issuance   $56,000

Net Loss                                           -$29,000

Expense                                            $120,000

Revenue                                            $91,000

Computation of Net Income  

Particular                                         Amount

Total increase in Asset                  $10,500

Less: Total Liabilities Increase     -$8,100  

Net Income                                     $2,400

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