contestada

Using the accounting equation Wizco Advertising’s balance sheet data at May 31, 2018, and June 30, 2018, follow: Learning Objective 3 May 31, 2018 June 30, 2018 Total Assets Total Liabilities $ 122,000 66,000 $ 287,000 144,000 For each of the following situations that occurred in June, 2018 with regard to owner’s contributions and withdrawals, compute the amount of net income or net loss during June 2018.
a. The owner contributed $10,000 to the business and made no withdrawals.
b. The owner made no contributions. The owner withdrew cash of $3,000.
c. The owner made contributions of $12,500 and withdrew cash of $30,000.

Relax

Respuesta :

anthougo

Answer:

Wizco Advertising

Using the accounting equation of Assets = Liabilities + Equity:

a. The owner contributed $10,000 to the business and made no withdrawals:

Computation of net income or loss during June 2018:

Assets = Liabilities + Capital + Net Income or Loss

$66,000 = $144,000 + 10,000 - 88,000

Net loss of $88,000

b. The owner made no contributions. The owner withdrew cash of $3,000.

Computation of net income or loss during June 2018:

Assets = Liabilities + Capital + Net Income or Loss

$66,000 = $144,000 - 3,000 - 75,000

Net loss of $75,000

c. The owner made contributions of $12,500 and withdrew cash of $30,000.

Computation of net income or loss during June 2018:

Assets = Liabilities + Capital + Net Income or Loss

$66,000 = $144,000 + 12,500 - 30,000 - 60,500

Net loss of $60,500

Explanation:

a) Data and Calculations:

                       May 31, 2018      June 30, 2018

Total Assets       $ 122,000         66,000

Total Liabilities $ 287,000         144,000

Capital                                           10,000

Net Loss                                      (88,000)

b) Assets $66,000

Liabilities  144,000

Drawings   (3,000)

Net loss   (75,000)

c) Assets $66,000

Liabilities  144,000

Capital       12,500

Drawings (30,000)

Net loss   (60,500)

Otras preguntas