The total equity of Bane Company at the beginning of 2008 amounted to $2,500. During 2008 the company reported net income of $1,200 and paid a $500 dividend. If retained earnings at the end of 2008 is $1,100, what was beginning contributed capital?

The total equity of Bane Company at the beginning of 2008 amounted to $2,500. During 2008 the company reported net income of $1,200 and paid a $500 dividend. If retained earnings at the end of 2008 is $1,100, what was beginning contributed capital?

A. $1,200
B. $2,100
C. $400
D. $1,800

Pair Company began operations on January 1, 2007. During 2007, the company engaged in the following cash transactions:
1) issued stock for $30,000
2) borrowed $23,000 from its bank
3) sold merchandise for $28,000
4) paid back $10,000 of the bank loan
5) paid rent expense for $2,000
6) purchased equipment costing $5,000
7) paid $3,000 dividends to stockholders
8) paid employees’ salaries, $11,000

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