Shane Cooke began a business, Cooke Company, on January 1, 2012, with an investment of $100,000. The company had the following assets and liabilities on the dates indicated:

Instructions
Use the accounting equation and the change in owner's equity during the year to calculate the profit (or loss) for:
(a) 2012, assuming Shane Cooke's drawings were $50,000 for the year.
(b) 2013, assuming Shane Cooke made an additional investment of $40,000 and had no drawings in 2013.
(c) 2014, assuming Shane Cooke made an additional investment of $10,000 and his drawings were $60,000 for the year.

Transcribed Image Text:

December 31 2012 2013 2014 Total Assets $370,000 440,000 525,000 Total Liabilities $210,000 290,000 355,000