# Question & Answer: Toth Company had the following assets and liabilities on the dates indicated……

Toth Company had the following assets and liabilities on the dates indicated.

Exercise 1-10 xYour answer is incorrect. Try again. Toth Company had the following assets and liabilities on the dates indicated December 31 2014 2015 2016 Total Assets Total Liabilities \$496,548 \$576,548 串706,548 \$199,562 \$249,562 \$349,562 Toth began business on January 1, 2014, with an investment of \$99,702 from stockholders From an analysis of the change in stockholders’ equity during the year, compute the net income (or loss) for: (a) 2014, assuming Toth paid \$24,768 in dividends for the year. Net income (loss) for 2014 (b) 2015, assuming stockholders made an additional investment of \$43,574 and Toth paid no dividends in 2015 Net income (loss) for 201!5 (c) 2016, assuming stockholders made an additional investment of \$17,752 and Toth paid dividends of \$29,847 in 2016. Net income (loss) for 2016

Total Assets = Total Liabilities + Equity

Hence, Equity = Total Assets – Total Liabilities

Now,

a.

 Equity as on December 31 ,2014 =  Total Assets as on December 31 ,2014 – Total Liabilties as on December 31 ,2014 296,986.00 Less : Opening Equity (Given) 99,702.00 Change in Equity as on December 31 ,2014 197,284.00 Add: Dividend Paid 24,768.00 Net Income (Loss) 222,052.00

b.

 Equity as on December 31 ,2015 =  Total Assets as on December 31 ,2015- Total Liabilties as on December 31 ,2015 326,986.00 Less : Opening Equity as calculated above 296,986.00 Change in Equity as on December 31 ,2014 30,000.00 Less : Additional Investment 43,574.00 Net Income (Loss) -13,574.00

c.

 Equity as on December 31 ,2015 =  Total Assets as on December 31 ,2015- Total Liabilties as on December 31 ,2015 356,986.00 Less : Opening Equity as calculated above 326,986.00 Change in Equity as on December 31 ,2014 30,000.00 Less : Additional Investment 17,752.00 Add: Dividends 29,847.00 Net Income (Loss) 42,095.00