question archive Amoco Car Rentals balance sheet data at May 31, 2018, and June 30, 2018, follow (Click the icon to view the balance sheet data) Read the requirement Begin by identifying the accounting equation and the formula expressed by the statement of owner's equity (the equity equation") (Abbreviation used Account Accounting) Account equation = Assets Liabilities - Equity Equity equation = Capital, Beginning + Owner contribution + Net income or Not loss - Owner withdrawal = Capital Ending For each of the following situations with regard to owner's contribution and withdrawals of the business, compute the amount of not income or net loss during June 2018
Amoco Car Rentals balance sheet data at May 31, 2018, and June 30, 2018, follow (Click the icon to view the balance sheet data) Read the requirement Begin by identifying the accounting equation and the formula expressed by the statement of owner's equity (the equity equation") (Abbreviation used Account Accounting) Account equation = Assets Liabilities - Equity Equity equation = Capital, Beginning + Owner contribution + Net income or Not loss - Owner withdrawal = Capital Ending For each of the following situations with regard to owner's contribution and withdrawals of the business, compute the amount of not income or net loss during June 2018
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Amoco Car Rentals balance sheet data at May 31, 2018, and June 30, 2018, follow (Click the icon to view the balance sheet data) Read the requirement Begin by identifying the accounting equation and the formula expressed by the statement of owner's equity (the equity equation") (Abbreviation used Account Accounting)
Account equation = Assets Liabilities - Equity
Equity equation = Capital, Beginning + Owner contribution + Net income or Not loss - Owner withdrawal = Capital Ending
For each of the following situations with regard to owner's contribution and withdrawals of the business, compute the amount of not income or net loss during June 2018. (Use a minus sign or parenthes
a. The owner contributed $18,000 to the business and made no withdrawals Net Income (loss) = $ 127,000
b. The owner made no contributions. The owner withdrew cash of $11,000 Net income (los) 98000
c. The owner made contributions of $25,000 and withdrew cash of $9.000
Net Income (los) $ 125,000
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The statement of owner's equity (the "equity equation"); (Abbreviation used: Account
Data Table
May 31, 2018 June 30, 2018 s
Total Assets $ 155,000 $ 231,000
Total Liabilities 133.000 122,000
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Answer:
We know, Accounting equation: Assets = Liabilities + Equity
or, Equity = Assets - Liabilities
Let us calculate the equity (Capital) as on 31st May, 2018 and 30th June, 2018:
| 31st May, 2018 | 30th June, 2018 | |
| Assets | $155,000 | $231,000 |
| Liabilities | $133,000 | $122,000 |
| Equity/Capital | $22,000 | $109,000 |
We know, Equity equation: Beginning Capital + Owner contribution + Net Income or - Net Loss - Owner withdrawal = Ending capital
or, Net Income/(Loss) = Ending capital + Owner withdrawal - Owner contribution - Beginning capital
Let us calculate the Net Income/(Loss) for different situations using the above derived formula:
| June 2018 | June 2018 | June 2018 | |
| Situation a | Situation b | Situation c | |
| Ending Capital | $109,000 | $109,000 | $109,000 |
| Add: Owner withdrawal | $0 | $11,000 | $9,000 |
| Less: Owner contribution | $18,000 | $0 | $25,000 |
| Less: Beginning capital | $22,000 | $22,000 | $22,000 |
| Net Income/(Loss) | $69,000 | $98,000 | $71,000 |
