Exercise 2-15 Computing net income LO A1 A sole proprietorship had the following

Question

Exercise 2-15 Computing net income LO A1 A sole proprietorship had the following assets and liabilities at the beginning and end of this year Beginning of the year End of the year $ 89,500$ 38,369 136,588 55,283 a. Owner made no investments in the business, and no withdrawals were made during the year. b. Owner made no investments in the business but withdrew $850 cash per month for personal use. c. Owner made no withdrawals during the year but did invest an additional $45,000 cash d. Owner withdrew $850 cash per month for personal use and invested an additional $35,000 cash. Determine the net income earned or net loss incurred by the business during the year for each of the above separate cases (Decreases in equity should be indicated with a minus sign.) Answer is not complete. b. d. Beginning of the year- 51,131s 51,131 51,131 S 51,131 00 45,000 35,000 0(10,200) 110,731 Owner i nts End of the year-Equity

Explanation / Answer

Calculate net income and net loss :

a b c d Beginning of the year-equity 51131 51131 51131 51131 Owner investment 0 0 45000 35000 Withdrawal by owner 0 (10200) 0 (10200) Net income 30086 40286 (14914) 5286 Ending of the year-equity 81217 81217 81217 81217

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