Eric Lu began a small business on 1 July 2018 by depositing $250 000 into a business

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Eric Lu began a small business on 1 July 2018 by depositing $250 000 into a business bank account. On 30 June for the next 3 years, the assets and liabilities of the business were as follows.

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By analysing the changes in equity each year, calculate the profit (loss) made by the business for each year ending 30 June, assuming the following events also occurred.

(a) On 1 January 2019, Eric withdrew $20 000 in cash from the business for personal use.

(b) On 28 August 2019, Eric invested additional cash of $30 000 into the business.

(c) On 31 July 2020, Eric invested additional cash of $25 000 into the business.

(d) On 28 January 2021, Eric withdrew $30 000 in cash for personal use.

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Financial Accounting

ISBN: 9780730363217

10th Edition

Authors: John Hoggett, John Medlin, Keryn Chalmers, Claire Beattie, Andreas Hellmann, Jodie Maxfield

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