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ASSETS AT THE BEGINNING OF THE YEAR IS $25,000 AT THE END OF THE YEAR ASSETS ARE $61,000, LIABILITIES AT THE BEGINNING OF THE YEAR IS 15,000 AND

ASSETS AT THE BEGINNING OF THE YEAR IS $25,000 AT THE END OF THE YEAR ASSETS ARE $61,000, LIABILITIES AT THE BEGINNING OF THE YEAR IS 15,000 AND 28,000 AT THE END OF THE YEAR IF THE OWNER CONTRIBUTES 6500 AND THE OWNER WITHDRAWALS 43000 HOW MUCH IS THE NET INCOME (LOSS)

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8 comments
  • Where did the $36,500 come from?
    • baldface
    • Apr 01, 2019 at 8:47pm
  • Never mind I figured it out, thank you!!
    • baldface
    • Apr 01, 2019 at 8:49pm
  • Hello: $23 000= Net Income+ 6500 - $43 000; Therefore, $23 000= Net Income- $38500
    • bfacenjoro
    • Apr 01, 2019 at 8:49pm
  • You are most welcome !
    • bfacenjoro
    • Apr 01, 2019 at 8:50pm
  • Then if you have net income of 3200 and owner withdrawal of 6100 how much did the owner contribute
    • baldface
    • Apr 01, 2019 at 8:55pm
  • Re-arranging the equation: Owner's contribution= Change in equity account - Net Income + Withdrawals. Therefore, Owner's contribution = $23 000-3200+6100= $25 900. Assuming the change in equity account holds.
    • bfacenjoro
    • Apr 01, 2019 at 9:13pm
  • I plugged in the amounts for the same question I asked at the beginning but now owner contributes 41,100 and withdrawals 2700 and I used the formula above but can't see to get the correct answer?
    • baldface
    • Apr 01, 2019 at 9:14pm
  • Hello. What is the exact wording of the question? Thank you
    • bfacenjoro
    • Apr 01, 2019 at 9:16pm

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