Question

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: Total Assets Total Liabilities Beginning of the year $550,000 $215,000 End of the year 844,000 320,000 On the basis of the preceding data and the following additional Information for the year, determine the net income for 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and had made withdrwwals from the business Mars The owner had made no additional investments in the business but had withdrawn $36,000 Saturn The owner had made an additional investment of $60,000 but had made no withdrawals Venus: The owner had made an additional investment of $60,000 and had withdrawn $36,000 Jupiter Net Income Mars Net Income Saturn Net Income Х Venus Net Income

Answer 1

Answer:

Jupiter	Net income	$189,000
Mars	Net income	$225,000
Saturn	Net income	$129,000
Venus	Net income	$165,000

Calculations:

I. increase in Owner's Equity:

	Total assets	-	Total liabilities	=	Owner's Equity
Beginning of the year	$550,000	-	$215,000	=	$335,000
End of the year	$844,000	-	$320,000	=	$524,000
Increase in Owner's Equity					$189,000

II. Net income (loss):

	Jupiter	Mars	Saturn	Venus
Increase in Owner's Equity	$189,000	$189,000	$189,000	$189,000
Add: Withdrawals	$0	$36,000	$0	$36,000
(Less): Additional investment	$0	$0	($60,000)	($60,000)
Net income (loss)	$189,000	$225,000	$129,000	$165,000