accounting

posted by .

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

December 31
Total Assets
Total Liabilities

2009 $400,000 $250,000
2010 $460,000 $300,000
2011 $590,000 $400,000


Lily began business on January 1, 2009, 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 the following situations. (If a net loss, record amount using either a negative sign preceding the number eg -45 or parentheses eg (45).)

(a) 2009, assuming Lily's drawings were $15,000 for the year.

$

(b) 2010, assuming Lily made an additional investment of 50,000 and had no drawings in 2010.

$

(c) 2011, assuming Lily made an additional investment of $15,000 and had drawings of $30,000 in 2011.

$

  • international economics -

    For 2009 your equity is: Assets minus liabilities. So $400,000 - 250,000 = $150,000 and your owners investment was $100,000 which means that $150,000 Owners Equity contains $100,000 investment, so the other $50,000 is net income for year 2009.

    Just use the ending 2009 numbers for assets, liabilities, owners equity and your ending 2010 numbers with any additional information to solve for your missing amounts for year 2010. For 2011 you will use ending 2010 numbers and ending 2011 numbers with any additional information provided to solve for the missing 2011 amounts.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. business

    Using the financial statements for the Goodyear Calendar Company, calculate the 13 basic ratios found in the chapter. December 31, 2008 Assets Current assets: Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . …
  2. Business

    Using the financial statements for the Goodyear Calendar Company, calculate the 13 basic ratios found in the chapter. GOODYEAR CALENDAR COMPANY Balance Sheet December 31, 2008 Assets Current assets: Cash . . . . . . . . . . . . . . …
  3. Math

    On March 31, 2009, Wolfson Corporation acquired all of the outstanding common stock of barney Corporation for $17,000,000 in cash. The book values and fair values of barney's assets and liabilities were as follows: Book value Fair …
  4. accouting

    Company E December 31, 2010 Assets $42,000 $32,760 $26,880 $74,760 $114,660 Liabilities 34,440 22,932 14,515 51,584 ?
  5. accounting

    :The balance sheet for Glenwood Corporation at December 31, 2011, showed the following subtotals: Current Assets $140,000 Current Liabilities 80,000 Property & Equipment 420,000 Total Stockholders' Equity 420,000 Retained Earnings …
  6. Finance

    Trying to figure out how to do problems like these. So confused! 1. The receivables turnover for 2009 is 10 times. 2. All sales are on account. 3. The profit margin for 2009 is 14.5%. 4. Return on assets is 22% for 2009. 5. The current …
  7. Accounting

    O' Hara Company began operations on December 1, 2011. Presented below is selected information related to O' Hara Company at December 31, 2011. Office Equipment ₤ 40,000; Utilities Expense ₤ 6,000; Cash 14,000; Accounts …
  8. Accounting

    O' Hara Company began operations on December 1, 2011. Presented below is selected information related to O' Hara Company at December 31, 2011. Office Equipment ₤ 40,000; Utilities Expense ₤ 6,000; Cash 14,000; Accounts …
  9. accounting

    Jan Nab is the sole owner of Deer Park, a public camping ground near the Lake Mead National Recreation Area. Jan has compiled the following financial information as of December 31, 2010. Revenues during 2010—camping fees $140,000 …
  10. accounting

    The following financial data were taken from the annual financial statements of Smith corporation: 2007 2008 2009 Current assets $450,000 $400,000 $500,000 Current liabilities $390,000 $300,000 $340,000 Sales $1,450,000 $1,500,000 …

More Similar Questions