Question

Activity 4.b - Using the Expanded Accounting Equation

Using the expanded accounting equation, calculate and enter the answers for each question. You will need to use the answers you calculate for beginning and ending equity to answer the rest of the questions.

Assets Liabilities

Beginning of Year:$25,000 $17,000

End of Year:$63,000 $28,000

3) If the owner contributes $9,800 and the owner withdraws $41,900, how much is net income (loss)?

4) If net income is $3,600 and owner withdrawals are $9,500, how much did the owner contribute (owner, capital)?

5) If the owner contributes $15,000 and net income is $19,000, how much did the owner withdraw (owner, withdrawals)?

6) If the owner contributes $43,500 and the owner withdraws $2,000, how much is net income (loss)?