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On January 1, 2011 we started a new business by investing cash of $10,000 and equipment of $9,000. During the year, we withdraw $2,000. When we prepare of Statement of Owners Equity, we note a final balance of $21,000.Based on this information, what was out net income or loss for the year? a. $4,000 net loss b. $2,000 net income c. $2,000 net loss d. $4,000 net income

On January 1, 2011 we started a new business by investing cash of $10,000 and equipment of $9,000. During the year, we withdraw $2,000. When we prepare of Statement of Owners Equity, we note a final balance of $21,000.Based on this information, what was out net income or loss for the year? a. $4,000 net loss b. $2,000 net income c. $2,000 net loss d. $4,000 net income

FINANCIAL ACCOUNTING
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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On January 1, 2011 we started a new business by investing cash of $10,000 and equipment of $9,000. During the year, we withdraw $2,000. When we prepare of Statement of Owners Equity, we note a final balance of $21,000.Based on this information, what was out net income or loss for the year? a. $4,000 net loss b. $2,000 net income c. $2,000 net loss d. $4,000 net income
Transcribed Image Text:On January 1, 2011 we started a new business by investing cash of $10,000 and equipment of $9,000. During the year, we withdraw $2,000. When we prepare of Statement of Owners Equity, we note a final balance of $21,000.Based on this information, what was out net income or loss for the year? a. $4,000 net loss b. $2,000 net income c. $2,000 net loss d. $4,000 net income
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