Exercise 2-13: Computing net income L.O. A1, P3 A proprietorship had the following assets and liabilities at the beginning and end of a recent year. Assets Liabilities Beginning of the year $ 96,500 $ 41,369 End of the year 146,000 59,130 ________________________________________ Determine the net income earned or net loss incurred by the business during the year for each of the following separate cases. (Net Loss amount should be indicated by a minus sign. Omit the "$" sign in your response.) a. Owner made no investments in the business and no withdrawals were made during the year. Net Income (13%) $ 17761 (0%) b. Owner made no investments in the business but withdrew $1,250 cash per month for personal use. Net Income (13%) $ 2761 (0%) c. No withdrawals were made during the year but the owner invested an additional $45,000 cash. Net Loss (13%) $ -27239 (0%) d. Owner withdrew $1,250 cash per month for personal use and the owner invested an additional $25,000 cash. Net Income (13%) $ 19130 (0%)

Exercise 2-13: Computing net income L.O. A1, P3

A proprietorship had the following assets and liabilities at the beginning and end of a recent year.

	Assets			Liabilities
Beginning of the year	$	96,500		$	41,369
End of the year		146,000			59,130

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Determine the net income earned or net loss incurred by the business during the year for each of the following separate cases. (Net Loss amount should be indicated by a minus sign. Omit the "$" sign in your response.)

a.	Owner made no investments in the business and no withdrawals were made during the year.

Net Income (13%)

$

17761   (0%)

b.	Owner made no investments in the business but withdrew $1,250 cash per month for personal use.

Net Income (13%)

$

2761   (0%)

c.	No withdrawals were made during the year but the owner invested an additional $45,000 cash.

Net Loss (13%)

$

-27239   (0%)

d.	Owner withdrew $1,250 cash per month for personal use and the owner invested an additional $25,000 cash.

Net Income (13%)

$

19130   (0%)