Determine the net income earned or net loss

Assignment Help Accounting Basics

Reference no: EM131528183

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

Assets Liabilities

Beginning of the year . . . . . . . . . $ 70,000 $30,000

End of the year . . . . . . . . . . . . . 115,000 46,000

Determine the net income earned or net loss incurred by the business during the year for each of the following separate cases:

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 $1,250 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 $1,250 cash per month for personal use and invested an additional $25,000 cash.

Reference no: EM131528183

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