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If equity at the beginning of the period is $177,000, profit for the period is $87,000 and dividends of $25,000 were paid during the period, equity at the end of the period is:

Question

If equity at the beginning of the period is 177,000,profitfortheperiodis177,000, profit for the period is 87,000 and dividends of $25,000 were paid during the period, equity at the end of the period is:

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Solution

To calculate the equity at the end of the period, you need to follow these steps:

  1. Start with the equity at the beginning of the period, which is $177,000.
  2. Add the profit for the period to the beginning equity. The profit is 87,000.So,87,000. So, 177,000 + 87,000=87,000 = 264,000.
  3. Subtract the dividends paid during the period from the result in step 2. The dividends are 25,000.So,25,000. So, 264,000 - 25,000=25,000 = 239,000.

Therefore, the equity at the end of the period is $239,000.

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