a. Owner made no investments in the business, and no dvidends were paid during t

Question

a. Owner made no investments in the business, and no dvidends were paid during the year b. Owner made no investments in the business, but dividends were $1,250 cash per month. c. No dividends were paid during the year, but the owner did invest an additional $55,000 cash in exchange for common stock d. Dividends were $1,250 cash per month, and the owner invested an additional $35,000 cash in exchange for common stock Determine the net income earned or net loss incurred by the business during the year for each of the above separate cases: (Decreases in equity should be indicated with a minus sign.) a. b. C. d. 60,000| 60.000| 60,000| 55,000 $ $ $ Beginning of the year-Equity Owner investments Dividends Net income (loss) End of the year-Equity 60000 35,000 (15,000) (15,000) 69,000 69,000 $6900 69,000

Explanation / Answer

a. b. c. d. Beginning of the year -Equity 60,000 60,000 60,000 60,000 Owner Investments 0 0 55,000 35,000 Dividends 0 -15,000 0 -15,000 Net income (loss) 9,000 24000 -46000 -11000 end of the year -Equity 69,000 69,000 69,000 69,000

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