Iverson Company had the following assets and liabilities on the dates indicated.
|
December 31 |
Total Assets |
Total Liabilities |
|
2013 |
$400,000 |
$250,000 |
|
2014 |
$460,000 |
$300,000 |
|
2015 |
$590,000 |
$400,000 |
Iverson began business on January 1, 2013, 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) 2013, assuming Iverson”s drawings were $15,000 for the year.
(b) 2014, assuming Iverson made an additional investment of $45,000 and had no drawings in 2014.
(c) 2015, assuming Iverson made an additional investment of $15,000 and had drawings of $25,000 in 2015.