Question

reported total equity of $128,000. During the current year, total revenues were $106,000 while total expenses were $95,500. Also, during the current year the company paid $30,000 in dividends. No other changes in equity occurred during the year. The change in total equity during the year was:

Answer 1

-$19,500

Step-by-step explanation:

We can calculate change in total equity during the year to be;

= Total revenue - total expenses - cash dividend

= $106,000 - $95,500 - $30,000

= - $19,500

Therefore, change in total equity is a decrease of -$19,500 in equity