Lily Company had the following assets and liabilities on the dates indicated. 

Lily began business on January 1, 2007, 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) 2007, assuming Lily’s drawings were \($15,000\) for the year.

(b) 2008, assuming Lily made an additional investment of \($50,000\) and had no drawings in 2008.

(c) 2009, assuming Lily made an additional investment of \($15,000\) and had drawings of \($30,000\) in 2009.

Transcribed Image Text:

December 31 Total Assets Total Liabilities 2007 $400,000 $250,000 2008 $460,000 $300,000 2009 $590,000 $400,000