Aaron Mitchell is the sole owner and operator of Midwest Enterprises. As of the end of its accounting period, December 31, Year 1, Midwest Enterprises has assets of $880,000 and liabilities of $290,000. During Year 2, Mitchell invested an additional $65,000 and withdrew $28,000 from the business. What is the amount of net income during Year 2, assuming that as of December 31, Year 2, assets were $960,000, and liabilities were $275,000?
Aaron Mitchell is the sole owner and operator of Midwest Enterprises. As of the end of its accounting period, December 31, Year 1, Midwest Enterprises has assets of $880,000 and liabilities of $290,000. During Year 2, Mitchell invested an additional $65,000 and withdrew $28,000 from the business. What is the amount of net income during Year 2, assuming that as of December 31, Year 2, assets were $960,000, and liabilities were $275,000?
Chapter20: Corporations And Parterships
Section: Chapter Questions
Problem 51P
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Aaron Mitchell is the sole owner and operator of Midwest Enterprises
Transcribed Image Text:Aaron Mitchell is the sole owner and operator of Midwest
Enterprises. As of the end of its accounting period, December 31,
Year 1, Midwest Enterprises has assets of $880,000 and liabilities
of $290,000. During Year 2, Mitchell invested an additional
$65,000 and withdrew $28,000 from the business.
What is the amount of net income during Year 2, assuming that
as of December 31, Year 2, assets were $960,000, and liabilities
were $275,000?
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