Reference no: EM132476402

incubus corporation began with an investment by shareholders of $49000.

Question a. In its first year, its income showed a deficit of $7900. What would the equity section of its balance sheet show at year end?

1. Common stock
2. Retained Earnings
3. Total stockholders' euity

Question B. In the second year, it had income of $15900 and a dividend of $6900 was paid. what would the equity section of its balance sheet shown at year year end?

1. Common stock
2. retained earnings
3. Total stockholders' equity

Question c. In the third year, incubus sold more shares for a value of $24500, earned income of $12900, and paid a dividend of $6900. What would the equity section of its balance sheet show at year end?

1. Common stock
2. Retained Earnings
3. Total stockholders' equity