The Constantine Company Had the Following Assets and Liabilities on the Dates

question 62

Essay

The Constantine Company had the following assets and liabilities on the dates indicated. $$\begin{array} { c c c } \text { December 31 } & \text { Total Assets } & \text { Total Liabilities } \\2017 & \$ 480,000 & \$ 250,000 \\2018 & \$ 460,000 & \$ 220,000 \\2019 & \$ 590,000 & \$ 300,000\end{array}$$
Constantine began business on January 1, 2017, with an investment of $100,000.
Instructions
From an analysis of the change in stockholders' equity during the year, compute the net income (or loss) for:
(a) 2017, assuming Constantine's dividends were $45,000 for the year.
(b) 2018, assuming Constantine made an additional investment of $50,000 and paid no dividends in 2018.
(c) 2019, assuming Constantine made an additional investment of $15,000 and paid dividends of $40,000 in 2019.

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Definitions:

Legal Dependent

An individual, often a child or spouse, who is legally recognized as being under the care and financial responsibility of another person or guardian.

Military Disaster

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Treaty of Friendship

An agreement between two or more nations emphasizing mutual respect, cooperation, and support, but it can relate to various specific historical treaties.

French People

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