Using the accounting equation to analyze business transactions
Great City Builders balance sheet data at May 31, 2012, and June 30, 2012, follow:
|
May 31, 2012 |
June 30, 2012 |
|
|
Total assets |
$177,000 |
$213,000 |
|
Total liabilities |
122,000 |
144,000 |
6
Requirement
1. Following are three situations about owner”s investments and drawings of the
business during June. For each situation, compute the amount of net income or
net loss during June 2012.
a. The owner invested $6,000 in the business and made no withdrawals.
b. The owner made no investments. The owner withdrew cash $10,000.
c. The company owner made investments of $18,000 and withdrew cash of $20,000.