Ask Question
BusinessBusiness
6 June, 07:06

A company has a beginning owner's capital of $100,000. It has net loss for the current year of $50,000 and paid $10,000 in dividends to shareholders. What is the ending owner's capital for the company?

+3
Answers (1)
  1. 6 June, 07:19
    0
    The ending owner's capital for the company is $40,000

    Explanation:

    For computing the ending owner capital, the following equation should be used which is shown below:

    Ending owner capital = Beginning owner capital - net loss - dividend paid to shareholders

    = $100,000 - - $50,000 - $10,000

    = $40,000

    The net loss and dividend decrease the owner equity which ultimately decreases the capital. So, we deduct these amounts.

    Hence, the ending owner's capital for the company is $40,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A company has a beginning owner's capital of $100,000. It has net loss for the current year of $50,000 and paid $10,000 in dividends to ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Explain in your own words why in the short run a firm may continue to produce even at a loss provided the price is more than the average variable cost. Also, provide an example of when a firm might face this decision.
Answers (2)
A wholesale nursery purchases six dozen gladiolus bulbs for $5. The nursery sells the six dozen resulting flowers to a wholesale florist for $10. The wholesale florist delivers the flowers to a retail florist for $15.
Answers (1)
Two years ago, the de Castellane Manufacturing Company included its employees in a profit-sharing plan in which workers receive semi-annual bonuses based on the company's profits.
Answers (1)
A production possibilities frontier is bowed outward when Group of answer choices the rate of tradeoff between the two goods being produced is constant.
Answers (1)
All of the following are examples of financial stability except: A. retirement. B. the ability to pay for a child's education. C. a savings account. D. living paycheck to paycheck.
Answers (2)
New Questions in Business
If the interest rate this year is 8% and the interest rate next year will be 10%, what is the future value of $1 after 2 years? what is the present value of a payment of $1 to be received in 2 years?
Answers (1)
A hyperlink: A. can tell you if the battery on your laptop is running low. B. can take the user to an external Internet site. C. can run the grammar check function. D. can spell check your slide presentation.
Answers (1)
Choose all that apply. Select sources of income. A) interest deposited into your savings account B) wages from your job C) commission for a sale D) a rent check from someone renting a property you own
Answers (2)
A company has two departments and allocates all overhead costs based on department revenues. The following information applies: Department 1 revenue $1,000,000 Department 2 revenue 1,500,000 Corporate overhead costs 250,000 Department overhead costs
Answers (1)
The most useful allocation basis for the departmental costs of an advertising campaign for a storewide sale is likely to be: Multiple Choice An equal amount of cost for each department. Number of customers to enter each department.
Answers (1)
Home » Business » A company has a beginning owner's capital of $100,000. It has net loss for the current year of $50,000 and paid $10,000 in dividends to shareholders. What is the ending owner's capital for the company?
Sign Up Forgot Password?