Four different proprietorships, Alpha, Bravo, Charlie and Delta, show the same balance sheet data at the beginning
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On the basis of the above data and the following additional information for the year, determine the net income (or loss) of each company for the year. (Hint: First determine the amount of increase or decrease in owner's equity during the year.)
Alpha: The owner had made no additional investments in the business and had made no withdrawals from the business.
Bravo: The owner had made no additional investments in the business but had withdrawn $120,000.
Charlie: The owner had made an additional investment of $270,000 but had made no withdrawals.
Delta: The owner had made an additional investment of $270,000 and had withdrawn$120,000.
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Accounting
ISBN: 978-0324401844
22nd Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
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