Merit Logistics's balance sheet data are shown below: .........January 1, 2017. December 31, 2017 Total assets $300,000

Question:

Merit Logistics's balance sheet data are shown below:

………………………….........………January 1, 2017…………. December 31, 2017

Total assets…………………………… $300,000…………………… $420,000

Total liabilities…………………………..260,000……………………. 340,000

Required

1. Compute the amount of net income or net loss for the company during the year ended December 31, 2017, if the owner invested $50,000 in the business and withdrew $30,000 during the year. Show all calculations.

2. Prepare the statement of owner's equity for Sandy Merit, the owner of Merit Logistics, for the year ended December 31, 2017.

Balance Sheet
Balance 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...