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Beginning stockholders' equity $58,000 ending stockholders' equity $30,000 stockholder dividends $25,000. Net loss for the period is $ 3,000
The definition of a shareholder is a person who owns shares in an organization. someone who owns inventory in Apple is an example of a shareholder. Someone who owns one or greater stocks of inventory in a joint-stock agency or an organization. Synonymous with a stockholder.
To delve into the underlying means of the phrases, "stockholder" technically method the holder of inventory, which may be construed as inventory, instead of shares. Conversely, "shareholders" approach the holder of a share, which could handiest mean an equity share in a commercial enterprise.
The common stockholders of a corporation are so frequently identified because the company's "proprietors" that it's clean to count on that is a reality of corporate regulation. In fact, no person simply "owns" an agency. Shareholders get referred to as proprietors because it's the closest approximation to what they surely are.
Analyzing the given information
Beginning stockholder equity of $ 58,000
Add Net income/(Net loss) To be calculated
Less stockholder dividend $ 25,000
Ending stock holder equity = $ 30,000
Calculation of stockholder equity before the dividend
Ending stocks holder $ 30,000
Add stockholder dividend of $ 25,000
Stockholder equity before dividend = $55,000
Calculation of net income
Stockholder equity before the dividend of $ 55,000
Less beginning stockholder equity $ (58,000)
Net income/ (net loss) = $ (3000)
Net loss for the period is $ 3,000
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