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Category > Accounting Posted 23 Aug 2017 My Price 9.00

Swit, Inc.

E1-18A (Learning Objectives 3, 4: Apply the accounting equation; evaluate business operations) Swit, Inc.’s comparative balance sheet at January 31, 2013, and 2012, reports the following (in millions):

 

 

 

 

2013

2012

Total assets

$48

$28

Total liabilities

17

5

 

 

 

 

â–¶ Requirements

Three situations about Swit’s issuance of stock and payment of dividends during the year ended January 31, 2013, follow. For each situation, use the accounting equation and the statement of retained earnings to compute the amount of Swit’s net income or net loss during the year ended January 31, 2013.

1.    Swit issued $1 million of stock and paid no dividends.

2.    Swit issued no stock but paid dividends of $4 million.

3.    Swit issued $33 million of stock and paid dividends of $8 million.

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Maurice Tutor
(5)
Status NEW Posted 23 Aug 2017 11:08 PM My Price 9.00

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