E1-21 Using the accounting equation Green City Builders' balance sheet data at May 31, 2016, and June 30, 2016, follow: May 31, 2016 June 30, 2016 Total assets Total liabilities $ 188,000 122,000 $ 244,000 88,000 For each of the following situations with regard to owner's contributions and withdrawals of the business, compute the amount of net income or net loss during June 2016. a. The owner contributed $7,500 to the business and made no withdrawals. b. The owner made no contributions. The owner withdrew cash of $13,000. c. The owner made contributions of $20,000 and withdrew cash of $18,000. 36 chapter 1 CHAPTER Learning Objective 3 E1-22 Using the accounting equation 000 and total liabilities of $5.00 Star Nursery starred 2016 with total assets of $24,000 an the end of 2016, Star Nursery's total assets stood at $18,000 and total liabilir were $1.000. Requirements 1. Did the owner's equiry of Star Nursery increase or decrease during 2016? By be much? 2. Identify the four possible reasons that owner's equiry can change. E1-23 Using the accounting equation During 2016, Peaceful River Spa reported revenue of $40,000. Toral expenses for the year were $35,000. Peaceful River Spa ended the year with total assets of $23,000, an it owed debts totaling $9.000. At year-end 2015, the business reported total assets of $18,000 and total liabilities of $9.000. Requirements 1. Compute Peaceful River Spa's net income for 2016. 2. Did Peaceful River Spa's owner's equity increase or decrease during 2016? By how much? Learning Objective 3 E1-24 Using the accounting equation The records of Mechan Company show the following at December 31, 2016: Beginning: $ 64,000 44,000 Equity: Owner contributions Owner withdrawals Assets Liabilities Ending: Assets Liabilities Revenues 4,000 257,000 $ 54,000 39,000 Expenses Requirements 1. Compute the missing amount for Meehan Company. You will need to work through owner's equity 2. Did Meehan earn a net income or suffer a net loss for the year? Compute the amount