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24 July, 13:37

At the beginning of the year, Vendors, Inc., had owners' equity of $50,435. During the year, net income was $6,675 and the company paid dividends of $4,535. The company also repurchased $8,785 in equity. What was the owners' equity account at the end of the year?

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  1. 24 July, 13:39
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    The owners' equity account at the end of the year was $43,790

    Explanation:

    Net Income is added to the equity balance. The dividend and buyback are the contra equity accounts so, these are deducted from the equity value to reach at ending balance.

    Beginning owners' equity = $50,435

    + Net Income = $6,675

    - Dividend Payment = $4,535

    - Company equity buyback = $8,785

    Ending owners equity = $43,790

    The owners' equity account at the end of the year was $43,790.
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