The Total Assets and Total Liabilities of Paul's Pools and Palaces

question 68

Essay

The total assets and total liabilities of Paul's Pools and Palaces at the beginning and at the end of the current fiscal year are as follows: $\begin{array}{llr}&\text { Jan. } 1&\text { Dec. } 31\\\text { Total assets } & \$ 280,000 & \$ 475,000 \\\text { Total liabilities } & 205,000 & 130,000\end{array}$ a)Determine the amount of net income earned during the year. The owner did not invest any additional assets in the business during the year and made no withdrawals.
b)Determine the amount of net income during the year. The assets and liabilities at the beginning and at the end of the year are unchanged from the amounts presented above. However, the shareholders were paid $53,000 in cash dividends during the year no additional purchase of common stock).
c)Determine the amount of net income earned during the year. The assets and liabilities at the beginning and at the end of the year are unchanged from the amounts presented above. However, the shareholders paid for $35,000 of common stock in June of the current fiscal year no dividends).
d)Determine the amount of net income earned during the year. The assets and liabilities at the beginning and at the end of the year are unchanged from the amounts presented above. However, the shareholders paid for $12,000 of common stock in August of the current fiscal year and were paid twelve monthly cash dividends of $1,500 each during the year.

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Definitions:

Employment Act of 1967

U.S. legislation aimed at promoting maximum employment, production, and purchasing power, often associated with measures to combat unemployment and inflation.

Corporate Philanthropy

Effort of an organization to make a contribution to the communities in which it earns profits.

Public Radio Station

A radio station that is funded by public means, such as government grants and listener donations, rather than commercial advertising.