Answer:
The Question is incomplete therefore the complete question may be like this;
Waldorf has following transactions in month of October 2018
1) Cash received from bank loans $60,000
2)Dividend paid to stockholders of $18,500 in cash
3) Revenue earned and received in cash amounted to $100,500
4) Expenses incurred and paid were $78,000
Now we can solve the question with above additional information;
Explanation:
Owners' Equity at 1st October 2018 $480,000
Dividend Paid ($18,500)
Revenue received $100,500
Expenses paid ($78,000)
Net Owners' Equity at 31st October 2018 $484,000
Owners' equity represents investments made by the owner less any withdrawal made thereof in terms of dividends or drawings. Bank loan is liability which has nothing to do with capital or owners' equity. Therefore the bank loan received is not accounted for here.
