Question

the beginning of the year, Vendors, Inc., had owners' equity of $50,630. During the year, net income was $6,850 and the company paid dividends of $4,630. The company also repurchased $8,930 in equity. What was the owners' equity account at the end of the year

Answer 1

Owner's equity at the end = $43920

Step-by-step explanation:

Given below is the informations:

Begining equity = $50630

Net income = $6850

Dividend paid = $4630

Repurchased = $8930

Below is the calculation for the owner's equity at the end.

Owner's equity at the end = Begining equity + Retained earning - Repurchased

Retained earning = 6850 - 4630 = 2220

Owner's equity at the end = 50630 + 2220 - 8930

Owner's equity at the end = $43920