A business had the following amounts of assets and liabilities at the beginning and end of a
Question:
A business had the following amounts of assets and liabilities at the beginning and end of a recent year:
Assets | Liabilities | ||||||
Beginning of the year | $ | 93,000 | $ | 42,000 | |||
End of the year | 132,000 | 64,000 | |||||
Determine the profit earned or net loss incurred by the business during the year under each of the following unrelated assumptions:
a. The owner made no additional investments in the business and withdrew no assets during the year.
b. The owner made no additional investments in the business during the year but withdrew $5,350 per month to pay personal living expenses.
c. The owner withdrew no assets during the year but invested an additional $92,000 cash.
d. The owner withdrew $4,700 per month to pay personal living expenses and invested an additional $87,000 cash in the business.
Fundamental Accounting Principles
ISBN: 978-0071051507
Volume I, 14th Canadian Edition
Authors: Larson Kermit, Tilly Jensen