Accounting question (Share Capital)

[Threesix]

Hi guys, I've been working for 8 hours on this 1 single accounting question and I cannot seem to wrap my mind around it, maybe you can help me understand it/solve it, thank you.

"Balance Sheet

Dan Dan Ltd. started its business on December 1 last year. On December 31, 2009, the ledger account balances show the following: $2500 Accounts payable, $5000 bank loan due in two years; $3200 Accounts receivable, $2000 inventory, $3500 Cash, $1000 Prepaid Rent, $5000 Office furnishings, $500 dividend... The income statement reports $1500 net income for the year ended December 31, 2009. How much was Dan Dan Ltd.'s share capital as of December 31, 2009? "


a. 6200
b. 1000
c. 0
d. 7200
e. 14700



Any help (especially on how you actually came to the answer) would be very much appreciated. Thanks again for any help/advice.

[Williams lester]

Is this the homework forum now?

[elainec100@cheapaccounting]

Do they call it home work in the US?

Blimey - what a why to cheat :rolleyes::rolleyes:

If he / she can't work that out - gawd help those needing an accountant in the US? :D:D;):rolleyes:

[Tom Egerton]

The answer is (a) and let me apologise on behalf of my learned colleagues.

[Matt Knight]

the answer is a if the 500 dividend was receivable else none of the above unless my maths is a bit wonky today:)