Question

Using the expanded accounting equation, calculate and enter the answers for each question. You will need to use the answers you calculate for beginning and ending equity to answer the rest of the questions. Assets Liabilities Beginning of Year $27.000 516.000 End of Year 161.000 5260 1) What is the equity at the beginning of the year? 2) What is the equity at the end of the year? Beginning Equity Ending Equity 3) if the owner contributes 59 500 and the owner withdraws 537,200, how much is net income (loss? 4) If net income is $2,100 and owner withdrawals are 55,200, how much did the owner contribute (owner, capital? Net Income (Loss) Owner, Capital 5) if the owner contributes $16,900 and net income is $17,400, how much did the owner withdraw (owner, withdrawals? 6) If the owner contributes $41.500 and the owner withdraws 53,100, how much is net income (loss)? Owner Withdrawals Net Income (Loss) Type here to search O II

Answer 1

It is given,
Beginning of the year,
Assets = $27,000
Liabilities = $16,000

End of the year,
Assets = $61,000
Liabilities = $26,000

1. Beginning equity = $11,000

Assets = Liability + Equity
$27,000 = $16,000 + Equity
Equity = $27,000 - $16,000 = $11,000

2. Ending equity = $35,000

Assets = Liability + Equity
$61,000 = $26,000 + Equity
Equity = $61,000 - $26,000 = $35,000

3. Net income = $51,700

It is given,
Owner contributed (Owner capital) = $9,500
Owner withdrawals = $37,200

Ending equity = Beginning equity + Owner additional contribution (Owner capital) + Net income - Owner withdrawals

$35,000 = $11,000 + $9,500 + Net income - $37,200

Net income = $51,700

4. Owner, capital = $27,100

It is given,
Net income = $2,100
Owner withdrawals = $5,200

Ending equity = Beginning equity + Owner additional contribution (Owner capital) + Net income - Owner withdrawals

$35,000 = $11,000 + Owner capital + $2,100 - $5,200

Owner capital = $27,100

5. Owner withdrawals = $10,300

It is given,
Owner contributed (Owner capital) = $16,900
Net income = $17,400

Ending equity = Beginning equity + Owner additional contribution (Owner capital) + Net income - Owner withdrawals

$35,000 = $11,000 + $16,900 + $17,400 - Owner withdrawals

Owner withdrawals = $10,300

6. Net loss = $14,400

It is given,
Owner contributed (Owner capital) = $41,500
Owner withdrawals = $3,100

Ending equity = Beginning equity + Owner additional contribution (Owner capital) + Net income - Owner withdrawals

$35,000 = $11,000 + $41,500 + Net income - $3,100

Net income = ($14,400), ie., Net loss = $14,400