Fall 2018 ACC 122:1000 Muhanmad Saeed &19/14/18 Homework: Chapter 1 Homework Ass

Question

Fall 2018 ACC 122:1000 Muhanmad Saeed &19/14/18 Homework: Chapter 1 Homework Assignment Score: 1.67 of 5 pts E1-24 (similar to) HW Score: 39 06%, 39 06 1. Compute the missing amount for Jones Company You will need to work thr 2. Did Jones earn a net income or t owner's equlity Rework 1. Compute the missing amount for Jones Company You will need to work hrough owners equity the accounting equation and then solve for ownerts equity (equity) at the beginning and end of the period Liabiltsies 5 44 000 45.000 Equity 33.000 83.000 $37,000 in ip

Explanation / Answer

Rewrirring of accounting Equation:

Beginning Capital + Owner's Contribution +Owner's Withdrawl - Profit during the year - Loss during the year = Ending capital

$33000+$0-$0+Profit = $37000

Profit during the year = 37000

Johnes Company has earned a profit of 4000 during the year and that was calculated through rewritting old accounting equation

Assumptions:

1)Since No information regarding Owner's Contribution& withdrawl was given it was assumed to be"zero"

2)More over in the Above equation Profit or loss any one thing will come.if profit comes it will be added and if any loss occurs it will be subracted.so in this quesion closing equity was more than openingequity, it was increased due to profit

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