Eric Lu began a small business on 1 July 2015 by depositing $250000 into a business bank
Question:
Eric Lu began a small business on 1 July 2015 by depositing $250000 into a business bank account. On 30 June for the next 3 years, the assets and liabilities of the business were as follows:
30 June | Total assets | Total liabilities | ||
2016 2017 2018 | $580000 650000 740 000 | $350000 370000 420000 |
Required:
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:
- On 1 January 2016, Eric withdrew $20 000 in cash from the business for personal use.
- On 28 August 2016, Eric invested additional cash of $30 000 into the business.
- On 31 July 2017, Eric invested additional cash of $25 000 into the business.
- On 28 January 2018, Eric withdrew $30 000 in cash for personal use.
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Related Book For
Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett
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