Last year the Baldwin company increased their equity. In 2020 their equity was $49,131. Last year (2021) it increased to $54,834. What are causes of change in equity

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03-12-2021
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Last year the Baldwin company increased their equity. In 2020 their equity was $49,131. Last year (2021) it increased to $54,834. What are causes of change in equity

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Tundexi Tundexi · Answer 1 · 2021-12-14T13:34:51+01:00

The Issue and retirement of stock, Profits of $12,805 and Dividend payment of $6,489 causes the change in equity

Basically, in accounting, the primary cause for increase in stockholders' equity is increase in retained earnings.

However, there are other factors that contributes to the change in shareholder's equity.

In conclusion, the Issue and retirement of stock, Profits of $12,805 and Dividend payment of $6,489 causes the change in equity

The missing options includes "A bond issue of$1,377. Issue and retirement of stock . Profits of $12,805 . A change of plant and equipment of$9,580. Plant Improvements of $9,580 A change in short term debt of-$4,478. Depreciation of -$41,287 Dividend payment of$6,489. A change in cash of $481. An accounts payable change of$1,546. Change in inventory of-$3,472."

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