Chapter 1, Problem E1.21E

E1-21 Using the accounting equation

Learning Objective 3

Wizco Advertising's balance sheet data at May 31, 2018, and June 30, 2018, follow:

	May 31, 2018	June 30, 2018
Total Assets	$ 122,000	$ 287,000
Total Liabilities	66,000	144,000

For each of the following situations that occurred in June, 2018 with regard to owner's contributions and withdrawals, compute the amount of net income or net loss during June 2018.

1. The owner contributed $10,000 to the business and made no withdrawals.
2. The owner made no contributions. The owner withdrew cash of $3,000.
3. The owner made contributions of $12,500 and withdrew cash of $30,000.