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Problem - Shane Sheridan began a business, Sheridan Company, on January 1, 2021, with an investment of $130,000. The company had the following assets and liabilities on the dates indicated:
December 31
Total Assets
Total Liabilities
2021
$390,000
$225,000
2022
$440,000
$285,000
2023
$525,000
$330,000
Required - Use the accounting equation and the change in owner's equity during the year to calculate the profit (or loss) for:
(a) 2021, assuming Shane Sheridan's drawings were $50,000 for the year.
(b) 2022, assuming Shane Sheridan made an additional investment of $51,000 and had no drawings in 2022.
(c) 2023, assuming Shane Sheridan made an additional investment of $10,000 and his drawings were $45,000 for the year.
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