a expressed by the statement of owner\'s equity (the \"equity equation\") (Abbre

Question

a expressed by the statement of owner's equity (the "equity equation") (Abbreviation used Account Accounting ) Requirement For each of the following situations that occurred in June, 2018 with regard to owners contributions and withdrawals, compute the amount of net income or net loss during June 2018 a. The owner contributed $10,000 to the business and made no withdrawals b. The owner made no contributions. The owner withdrew cash of $3,000 c. The owner made contributions of $12,500 and withdrew cash of $30,000 Print Done er Clear All

Explanation / Answer

With the contributions made, the net income increases and with drawings it reduces and vice versa for the net losses.

Keeping this theory in mind below is the solution to above asked questions:

a) increase in net profit by $10000

b) decrease by$3000

c) increase by $12500 and decrease by $30000

total net profit/ loss=$(10000-3000+12500-30000)=$10500 net loss

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