Reference no: EM132464840

The total assets and liabilities of Robot Company at January 1 and December 31, 2020 are presented below.

                       January 1                December 31

Assets              $76,000                     $112,000

Liabilities           26,000                         28,800

Instructions:

Question 1: Assume owner's drawings of $10,800 were paid and no additional investment was made during the year. Revenues were $110,000. Compute (a) net income, and (b) expenses.

Question 2: Assume an additional investment was made for $4,800 and no drawings were paid during the year. Expenses were $42,000. Compute (a) net income, and (b) revenues.

Question 3: Assume an additional investment was made for $62,000 and drawings of $15,600 were paid during the year. Compute net income.

Question 4: Assume an additional investment was made for $6,000, and net income was $51,000. Compute the drawings paid.