Four different proprietorships, Juliet, Kilo, Lima, and Mike, show the same balance sheet data at the beginning
Question:
Four different proprietorships, Juliet, Kilo, Lima, and Mike, show the same balance sheet data at the beginning and end of a year. These data, exclusive of the amount of owner's equity, are summarized as follows:
_____________________________Total Assets __________Total Liabilities
Beginning of the year ................. $ 600,000 ........................ $150,000
End of the year ........................ 1,125,000 ......................... 500,000
On the basis of the above data and the following additional information for the year, determine the net income (or loss) of each company for the year.
Juliet: The owner had made no additional investments in the business and had made no withdrawals from the business.
Kilo: The owner had made no additional investments in the business but had withdrawn $55,000.
Lima: The owner had made an additional investment of $100,000 but had made no withdrawals.
Mike: The owner had made an additional investment of $100,000 and had withdrawn $55,000.
Balance SheetBalance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
Accounting
ISBN: 978-1133607601
25th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac