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Owners Equity and Net Income

At beginning of year, paid in capital was $82 and retained earningswas $49. During the year, the owners invested $34 and dividends of $5 were decalred and paid. Retained earnings at then end of the year were $52. How much was total owner's equity at the end of the year and how much was the net income for the year?
Here is all I can get to:
Paid in Capital
Beginning of year ............ $82
Owner invested ............ 34
Balance end of year $116

Retained Earnings
Beginning of year ............$ 49
Dividends ............. (5)
Balance end of year .......... 44 ----- this is not $52 What is wrong?

Net Income = Revenues - Expenses .......... I don't know how to get this from the above information.

Solution Preview

Retained Earnings increase due to the net income of the year and reduce due to dividends. If you make a statement of retained ...

Solution Summary

The solution explains the calculation for net income and ending owners equity given the beginning balances.

$2.19