Shane Wildhorse began a business, Wildhorse Company, on January 1, 2021, with an investment of $105,000. The company had the following assets and liabilities on the dates indicated: December 31 Total Assets Total Liabilities 2021 $378,000 $220,000 2022 440,000 290,000 2023 525,000 315,000 Use the accounting equation and the change in owner's equity during the year to calculate the profit (or loss) for: (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses eg. (45).) (a) 2021, assuming Shane Wildhorse's drawings were $50,000 for the year. Profit / (Loss) $ 108,000 (b) 2022, assuming Shane Wildhorse made an additional investment of $51,000 and had no drawings in 2022. Profit / (Loss) $ 201.000 (c) 2023, assuming Shane Wildhorse made an additional investment of $10,000 and his drawings were $45,000 for the year. Profit / (Loss) 175,000
Shane Wildhorse began a business, Wildhorse Company, on January 1, 2021, with an investment of $105,000. The company had the following assets and liabilities on the dates indicated: December 31 Total Assets Total Liabilities 2021 $378,000 $220,000 2022 440,000 290,000 2023 525,000 315,000 Use the accounting equation and the change in owner's equity during the year to calculate the profit (or loss) for: (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses eg. (45).) (a) 2021, assuming Shane Wildhorse's drawings were $50,000 for the year. Profit / (Loss) $ 108,000 (b) 2022, assuming Shane Wildhorse made an additional investment of $51,000 and had no drawings in 2022. Profit / (Loss) $ 201.000 (c) 2023, assuming Shane Wildhorse made an additional investment of $10,000 and his drawings were $45,000 for the year. Profit / (Loss) 175,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
How do I calculate the profit?
Transcribed Image Text:Shane Wildhorse began a business, Wildhorse Company, on January 1, 2021, with an investment of $105,000. The company had
the following assets and liabilities on the dates indicated:
December 31
Total Assets
Total Liabilities
2021
$378,000
$220,000
2022
440,000
290,000
2023
525,000
315,000
Use the accounting equation and the change in owner's equity during the year to calculate the profit (or loss) for: (Enter negative
amounts using either a negative sign preceding the number eg. -45 or parentheses eg. (45).)
(a) 2021, assuming Shane Wildhorse's drawings were $50,000 for the year.
Profit / (Loss)
108,000
(b) 2022, assuming Shane Wildhorse made an additional investment of $51,000 and had no drawings in 2022.
Profit / (Loss)
$
201,000
(c) 2023, assuming Shane Wildhorse made an additional investment of $10,000 and his drawings were $45,000 for the year.
Profit / (Loss)
$
175,000
%24
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