Chapter 1, Problem 15E

Four different proprietorships, Jupiter, Mars, Saturn, and Venus, show the same balance sheet data at the beginning and end of a year. These data, exclusive of the amount of owner’s equity, are summarized as follows:

On the basis of the preceding data and the following additional information for the year, determine the net income (or loss) of each company for the year. (Hint: First, determine the amount of increase or decrease in owner’s equity during the year.)

Jupiter:    The owner had made no additional investments in the business and had made no withdrawals from the business.

Mars:    The owner had made no additional investments in the business but had withdrawn $36,000.

Saturn:    The owner had made an additional investment of $60,000 but had made no withdrawals.

Venus:    The owner had made an additional investment of $60,000 and had withdrawn $36,000.