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Question - Incubus Corporation began with an investment by shareholders of $40,000.
a. In its first year, its income showed a deficit of $7,000. What would the equity section of its balance sheet show?
b. In the second year, it had an income of $15,000 and a dividend of $6,000 was paid. What would the equity section of its balance sheet show?
c. In the third year, Incubus sold more shares for a value of $20,000. Earned income of $12,000, and paid a dividend of $6,000. What would the equity section of its balance sheet show
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