1. Introduction to Accounting Preparing for a User’s Perspective Introduction to Accounting Preparing for a User’s Perspective www.canvas.net Free Jan. 2014 www.canvas.net Free Jan. 2014 Expanded Accounting Equation: Computing Changes in Retained Earnings Available on the Google Play Store with support from By Kevin C. Kimball, CPA Debits and Credits Trainer

2. Question 1: At the beginning of the year (X1), Assets were $50, Liabilities $20, and Capital Stock was $5. During the year, Assets increased $70, Liabilities decreased $5. No changes in Capital Stock occurred during the year. Dividends paid during the year were $10. Compute Ending Retained Earnings ____ and the Net Income earned during the year (X1) ____ Expanded Accounting Equation Stock Issuances Stock Repurchases Net Income (Net Loss) Dividends

3. Expanded Accounting Equation Question 2: At the beginning of the year (X1), Assets were $90, Capital Stock was $10 and Retained Earnings was $40. During the year, the company earned $80 in Net Income, Assets decreased $20, Liabilities increased $30 and new Capital Stock of $70 was issued during the year, no stock repurchases occurred during the year. Compute beginning liabilities___ and ending assets ___. Compute ending Capital Stock ____ and Retained Earnings____. How much in Dividends were recorded during the year?_____. What was the change in Retained Earnings?___ Stock Issuances Stock Repurchases Dividends Net Income (Net Loss)

4. Introduction to Accounting Preparing for a User’s Perspective Introduction to Accounting Preparing for a User’s Perspective www.canvas.net Free Jan. 2014 www.canvas.net Free Jan. 2014 Expanded Accounting Equation: Computing Changes in Retained Earnings Available on the Google Play Store with support from By Kevin C. Kimball, CPA Debits and Credits Trainer