Problem:
At beginning of year, paid in capital was $82 and retained earningswas $49. During the year, the owners invested $34 and dividends of $5 were decalred and paid. Retained earnings at then end of the year were $52. How much was total owner's equity at the end of the year and how much was the net income for the year?
Here is all I can get to:
Paid in Capital
Beginning of year ............ $82
Owner invested ............ 34
Balance end of year $116
Retained Earnings
Beginning of year ............$ 49
Dividends ............. (5)
Balance end of year .......... 44 ----- this is not $52 What is wrong?
Net Income = Revenues - Expenses .......... I don't know how to get this from the above information.