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Presented below are data for Bandkok Corp.

2020 2021
Assets, January 1 $8,850 $9,720
Liabilities, January 1 4,860 ?
Stockholders' Equity, Jan. 1 ? ?
Dividends 1,620 1,215
Common Stock 1,458 1,296
Stockholders' Equity, Dec. 31 ? ?
Net Income 1,920 1,296
Stockholders' Equity at January 1, 2021 is
a. $5,748.
b. $3,990.
c. $4,290.
d. $5,910.

1 Answer

3 votes

Final answer:

The question seeks to calculate the beginning Stockholders' Equity for Bandkok Corp. in 2021, but due to missing Liabilities data for that period, it is not possible to provide an accurate answer. Normally, Equity is calculated by subtracting Liabilities from Assets.

Step-by-step explanation:

The student is asking about calculating the Stockholders' Equity at the beginning of the year for Bandkok Corp. based on the provided financial data. To find the Stockholders' Equity at January 1, 2021, we use the basic accounting equation which states that Assets equal Liabilities plus Equity. Given that the Assets at January 1, 2021, are $9,720 and the Dividends for 2020 are $1,620 with a Net Income of $1,920, we can calculate the Equity at the start of 2021 by subtracting the Liabilities from the Assets as of that date. However, since the question does not provide the Liabilities at January 1, 2021, we cannot accurately calculate the Equity. Based on this missing information, we are unable to determine the correct answer among the provided options. If the Liabilities were known, the Equity would be the difference between the Assets and Liabilities.

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