Exercise 2-15 Computing net income LO A1 A sole proprietorship had the following assets and liabilities at the beginning and end of this year. Assets Liabilities Beginning of the year End of the year $100,000 157,000 $42,870 63,585 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 $1,200 cash per month for personal use. c. Owner made no withdrawals during the year, but the owner did invest an additional $45,000 cash. d. Owner withdrew $1,200 cash per month for personal use, and the owner invested an additional $35,000 cash. Determine net income or net loss for the business during the year for each of the above separate cases: (Decreases In equity should be indicated with a minus sign.)

Exercise 2-15 Computing net income LO A1 A sole proprietorship had the following assets and liabilities at the beginning and end of this year. Assets Liabilities Beginning of the year End of the year $100,000 157,000 $42,870 63,585 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 $1,200 cash per month for personal use. c. Owner made no withdrawals during the year, but the owner did invest an additional $45,000 cash. d. Owner withdrew $1,200 cash per month for personal use, and the owner invested an additional $35,000 cash. Determine net income or net loss for the business during the year for each of the above separate cases: (Decreases In equity should be indicated with a minus sign.)

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Description: Exercise 2-15 Computing net income LO A1A sole proprietorship had the following assets and liabilities at the beginning and end of this year.AssetsLiabilitiesBeginning of the yearEnd of the year$100,000157,000$42,87063,585a. Owner made no investment

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A-1
Answer the activity 1 and 2
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