Bell Computers\'balance sheet data at May 31, 2016, and June 30, 2016, follow: E

Question

Bell Computers'balance sheet data at May 31, 2016, and June 30, 2016, follow: EE Click the icon to view the balance sheet data.) For each of the following situations with regard to owner's contributions and withdrawals of the business, compute the amount of net income or net loss during June 2016 a. The owner contributed $15,000 to the business and made no withdrawals b. The owner made no contributions. The owner withdrew cash of $12,000. c. The owner made contributions of $18,000 and withdrew cash of $8,000 Begin by identifying the accounting equation and the formula expressed by the statement of owner's equity (the "equity equation"): (Abbreviation used: AccountAccounting.) Account. equation: Equity equation Data Table May 31, 2016 June 30, 2016 155,000 $ 133,000 Total assets 287,000 Total liabilities 66,000 Print Done

Explanation / Answer

Using accounting equation =Total asset =total liabilities +total equity

May 31 2016 : 155000 = 133000 +equity

equity = 155000-133000= 22000

June 30 2016: 287000=66000+ equity

equity = 221000

shareholders equation = Beginning equity +net income +contribution - withdrawl =ending equity

a)22000+NI +15000-0 = 221000

NI = 221000-22000-15000

= 184000

B)22000+NI +0 -12000 =221000

NI = 221000+12000-22000

        = 211000

C)22000+NI +18000-8000 =221000

NI = 221000+8000 -18000- 22000

   = 189000

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