Question

Stahl Consulting started the year with total assets of $60000 and total liabilities of $15000. During the year, the business recorded $48000 in catering revenues and $30000 in expenses. Stahl issued stock of $9000 and paid dividends of $15000 during the year. The stockholders' equity at the end of the year was

Answer 1

The stockholders' equity amounts to $57,000 at the year end

Step-by-step explanation:

The stockholders' equity at the year end is computed as:

Stockholders' equity = (Assets - Liabilities) + (Revenue - Expense) + Issued Stock - Dividend paid

where

Assets amounts to $60,000

Liabilities amounts t0 $15,000

Revenue amounts to $48,000

Expense amounts to $30,000

Issued stock amounts to $9,000

Dividend paid amounts to $15,000

So, putting the values above:

Stockholders' equity = ($60,000 - $15,000) + ($48,000 - $30,000) + $9,000 - $15,000

Stockholders' equity = $45,000 + 18,000 + $9,000 - $15,000

Stockholders' equity = $72,000 - $15,000

Stockholders' equity = $57,000