Question 4 Romeo Wizard began a lemonade truck business on 1 July 2021 and deposited $25,000...

 

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Question 4 Romeo Wizard began a lemonade truck business on 1 July 2021 and deposited $25,000 into a business bank account. The assets and liabilities of the business for the years ending 30 June were as follows: Year ending Total Total 30 June assets liabilities 2022 $58,000 $35,000 2023 65,000 37,000 2024 74,000 42,000 During 2022 and 2023, Romeo made the following capital investments/withdrawals: (a) On 1 January 2022, Romeo withdrew $12,000 in cash from the business for personal use. (b) On 28 August 2022, Romeo invested additional cash of $25,000 into the business. (c) On 31 July 2023, Romeo invested additional cash of $25,000 into the business. Required Using the format of a statement of changes in equity, calculate the profit (loss) made by the business for the year ending 30 June 2022 and 2023 respectively. Question 4 Romeo Wizard began a lemonade truck business on 1 July 2021 and deposited $25,000 into a business bank account. The assets and liabilities of the business for the years ending 30 June were as follows: Year ending Total Total 30 June assets liabilities 2022 $58,000 $35,000 2023 65,000 37,000 2024 74,000 42,000 During 2022 and 2023, Romeo made the following capital investments/withdrawals: (a) On 1 January 2022, Romeo withdrew $12,000 in cash from the business for personal use. (b) On 28 August 2022, Romeo invested additional cash of $25,000 into the business. (c) On 31 July 2023, Romeo invested additional cash of $25,000 into the business. Required Using the format of a statement of changes in equity, calculate the profit (loss) made by the business for the year ending 30 June 2022 and 2023 respectively.

Answer rating: 100% (QA)

Year Ending June 2022 June 30 2022 Ending balance Add Withdrawals Le... View the full answer