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Section_1_and_Section_2_Assignment_Solution

# Section_1_and_Section_2_Assignment_Solution - Section 1 and...

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Section 1 and Section 2 Assignment Solution PART I: Wolfpack Corporation’s stockholders’ equity increased by \$800,000 from the beginning of 2012 to the end of 2012. During 2012, the following occurred: \$200,000 of capital stock was issued Dividends of \$300,000 were paid Required: Based on the above information, calculate Wolfpack’s net income for 2012. Answer : ___ \$900,000 _________ Capital stock issued \$200,000 Dividends paid (300,000) Net income ? = 900,000 Increase in SE 800,000 Alternatively, you could think of the “increase” in SE as meaning it went from \$0 to \$800,000 from the beginning to the end of the year. Beginning SE \$ 0 Add: Capital stock issued 200,000 Less: Dividends paid (300,000) Add: Net income ? = 900,000 Ending SE \$ 800,000 PART II: True/False: Indicate beside each statement whether the statement is true or false. a. ___ F _____ On the XYZ Company’s balance sheet, the cash account balance includes cash that belongs to the owners of the business. This is a

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Section_1_and_Section_2_Assignment_Solution - Section 1 and...

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