Lily Company had the following assets and liabilities on the dates indicated.
|
December 31 |
Total Assets |
Total Liabilities |
|
2009 |
$400,000 |
$250,000 |
|
2010 |
$460,000 |
$300,000 |
|
2011 |
$590,000 |
$400,000 |
Lily began business on January 1, 2009, with an investment of $100,000.
Instructions From an analysis of the change in owner’s equity during the year, compute the net income (or loss) for:
(a) 2009, assuming Lily’s drawings were $15,000 for the year.
(b) 2010, assuming Lily made an additional investment of $50,000 and had no drawings in 2010.
(c) 2011, assuming Lily made an additional investment of $15,000 and had drawings of $30,000 in 2011.