Question

Q1. Compute the missing amount for each of the following separate companies a through d. (Losses...

Q1. Compute the missing amount for each of the following separate companies a through d. (Losses and amounts to be deducted should be indicated with a minus sign.)

(a) (b) (c) (d)
Equity, December 31, 2014 $0 $0 $0 $0
Owner investments during the year 96,500 88,368 206,183
Owner withdrawals during the year (50,000) (11,000) (56,000)
Net income (loss) for the year 92,500 45,545 (3,000)
Equity, December 31, 2015 $98,500 $95,545 $106,183

Q2.

A sole proprietorship had the following assets and liabilities at the beginning and end of this year.

  

    Assets   Liabilities
  Beginning of the year $ 101,000 $ 43,299    
  End of the year 150,000 60,750    

    

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 $1,050 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 $1,050 cash per month for personal use and invested an additional $25,000 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.)

a. b. c. d.
Beginning of the year—Equity
Owner investments
Withdrawals by owner
Net income (loss)
End of the year—Equity

Homework Answers

Answer #1

Q1.

a. b. c. d.
Equity, December 31, 2014 $ 0 $ 0 $ 0 $ 0
Owner investments during the year 96,500 100,000 88,368 206,183
Owner withdrawals during the year - 90,500 - 50,000 - 11,000 - 56,000
Net income ( loss) for the year 92,500 45,545 -3,000 - 44,000
Equity, December 31, 2015 $ 98,500 $ 95,545 $ 74,368 $ 106,183

Q2.

a. b. c. d.
Beginning of the year : Equity $ 57,701 $ 57,701 $ 57,701 $ 57,701
Owner investments 0 0 45,000 25,000
Withdrawal by owner 0 - 12,600 0 - 12,600
Net income ( loss) 31,549 44,149 - 13,451 19,149
End of the year : Equity $ 89,250 $ 89,250 $ 89,250 $ 89,250
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A sole proprietorship had the following assets and liabilities at the beginning and end of this...
A sole proprietorship had the following assets and liabilities at the beginning and end of this year. Assets Liabilities Beginning of the year $ 109,500 $ 46,943 End of the year 163,500 66,218 Owner made no investments in the business, and no withdrawals were made during the year. Owner made no investments in the business, but withdrew $1,100 cash per month for personal use. Owner made no withdrawals during the year, but the owner did invest an additional $45,000 cash....
The following financial statement information is from five separate companies: December 31, 2016 Company A Company...
The following financial statement information is from five separate companies: December 31, 2016 Company A Company B Company C Company D Company E Assets 35,000 27,300 22,400 62,300 95,550 Liabilities 28,700 19,110 12,096 42,987 ? December 21, 2017 Assets 40,000 28,800 ? 72,800 110,400 Liabilities ? 19,584 13,132 34,944 87,216 During year 2017 Owner investments 6,000 1,400 9,750 ? 6,500 Net income (loss) 9,200 ? 6,200 11,543 8,574 Owner cash withdrawals 3,500 2,000 5,875 0 11,000 1a. what is the...
roblem 1-2A Computing missing information using accounting knowledge LO A1, P1 [The following information applies to...
roblem 1-2A Computing missing information using accounting knowledge LO A1, P1 [The following information applies to the questions displayed below.] The following financial statement information is from five separate companies: Company A Company B Company C Company D Company E December 31, 2016 Assets $ 32,000 $ 24,960 $ 20,480 $ 56,960 $ 87,360 Liabilities 26,240 17,472 11,059 39,302 ? December 31, 2017 Assets 37,000 26,640 ? 67,340 102,120 Liabilities ? 18,115 12,147 32,323 80,674 During year 2017 Owner investments...
A general partnership had the following information at the end of each of the years 20X0,...
A general partnership had the following information at the end of each of the years 20X0, 20X1 and 20x2: Current liabilities for 20X0 $20,000, Long term liabilities $50,000 and Net income or Loss is N/A. For 20X1 the current liabiblities were $20,000, the long term liabilities were $50,000 and Net income or loss was ($40,000- loss), for 20X2 the current liabiblites were $18,000, the long term liabilities were $60,000 and the Net income or loss was $15,000 income. All liabilities...
A general partnership had the following information at the end of each of the years for...
A general partnership had the following information at the end of each of the years for 20X0 and 20X1. Current liabilities are $20,000 for 20X0 and $20,000 for 20X1. Long term liabilities for 20X0 of $50,000 and $50,000 for 20X1 and net income(or loss) 20X0 is N/A and 20X1 ($40,000-loss). All liabilities are recourse debt and partner M guaranteed all the long term liabilities. M, a 10% owner, had a $10,000 basis in the partnership at the end of 20X0....
A farm business manager has just finished preparing end of year financial statements for the business....
A farm business manager has just finished preparing end of year financial statements for the business. The following financial information was determined:             Current assets – beginning of year                             $200,000             Total assets – beginning of year                                 $600,000             Current liabilities – beginning of year                        $100,000             Total liabilities – beginning of year                            $150,000             Total equity – beginning of year                                 $450.000             Current assets – end of year                                        $250,000             Total assets – end of year                                           $800,000             Current liabilities – end of year                                  $150,000                                                         Total liabilities – end of year                                      $300,000             Total equity – end...
Let’s put all the pieces together now. Suppose that you are analyzing Martin Company. You know...
Let’s put all the pieces together now. Suppose that you are analyzing Martin Company. You know that at the beginning of the year, the assets equaled $320,000 and the liabilities equaled $176,000. During the year, assets increased by $48,000 and owner's equity increased by $24,400. The change in owner's equity includes all increases and decreases. Further analysis reveals that the changes in owner's equity were caused by revenues of $223,200 and expenses totaling $112,320 during the year, and additional owner's...
The assets and liabilities of Thompson Computer Services at March 31, the end of the current...
The assets and liabilities of Thompson Computer Services at March 31, the end of the current year, and its revenue and expenses for the year are listed below. The capital of the owner was $180,000 at April 1, the beginning of the current year. Mr. Thompson invested an additional $25,000 in the business during the year. Accounts Amount Accounts Amount Accounts payable $2,000 Miscellaneous expense $1,030 Accounts receivable 10,340 Office expense 1,240 Cash 21,420 Supplies 1,670 Fees earned 73,450 Wages...
Shep Company’s records show the following information for the current year. Beginning of year End of...
Shep Company’s records show the following information for the current year. Beginning of year End of year Total assets $ 54,000 $ 85,000 Total liabilities $ 24,000 $ 37,000 Determine net income (loss) for each of the following separate situations. (For all requirements, losses should be entered with a minus sign.) a. Additional common stock of $5,000 was issued and dividends of $9,000 were paid during the current year. b. Additional common stock of $15,500 was issued and no dividends...
Problem 12-13A Prepare and Interpret a Statement of Cash Flows; Free Cash Flow [LO12-1, LO12-2, LO12-3]...
Problem 12-13A Prepare and Interpret a Statement of Cash Flows; Free Cash Flow [LO12-1, LO12-2, LO12-3] Mary Walker, president of Rusco Company, considers $27,000 to be the minimum cash balance for operating purposes. As can be seen from the following statements, only $22,000 in cash was available at the end of 2015. Since the company reported a large net income for the year, and also issued both bonds and common stock, the sharp decline in cash is puzzling to Ms....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT