Shane Cooke began a business, Cooke Company, on January 1, 2017, with an investment of $100,000. The company had the following assets and liabilities on the dates indicated:
December 31 Total Assets Total Liabilities
2017................................$370,000...........................$210,000
2018..................................440,000.............................290,000
2019..................................525,000.............................355,000
Instructions
Use the accounting equation and the change in owner's equity during the year to calculate the profit (or loss) for:
(a) 2017, assuming ShaneCooke's drawings were $50,000 for the year.
(b) 2018, assuming Shane Cooke made an additional investment of $40,000 and had no drawings in 2018.
(c) 2019, assuming ShaneCooke made an additional investment of $10,000 and his drawings were $60,000 for the year.