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Lily Company had the following assets and liabilities on the dates indicated. Lily began business on January 1, 2009, with an investment of $100,000.InstructionsFrom an analysis of the change in owners equity during the year, compute the net income (or loss) for:(a) 2009, assuming Lilys drawings were $5,000 for the year.(b) 2010, assuming Lily made an additional investment of $50,000

Chapter 1, Exercises #10

Lily Company had the following assets and liabilities on the dates indicated.

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Lily began business on January 1, 2009, with an investment of $100,000.InstructionsFrom an analysis of the change in owners equity during the year, compute the net income (or loss) for:(a) 2009, assuming Lilys drawings were $5,000 for the year.(b) 2010, assuming Lily made an additional investment of $50,000 and had no drawings in 2010.(c) 2011, assuming Lily made an additional investment of $15,000 and had drawings of $30,000 in 2011.

Transcribed Image Text:

December 31 2009 2010 Total Assets $400,000 $460,000 Total Liabilities $250,000 $300,000 2011 $590,000

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(a) Owners equity x 12/31/09 ($400,000 $250,000) ................................ $150,000 Owners e…View the full answer

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Related Book For answer-question
Accounting Principles

Accounting Principles

9th Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

ISBN: 978-0470533475

Answers for Questions in Chapter 1

Brief Exercises:
Broadening Your Perspective:
DO IT! Review:
Exercises:
Problem Set A:
Problem Set B:
Questions:

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