i do not understand how to solve ?? marks
December 31, 2006
(A)
Assetts $34,000
Liabilities 21,500
December 31, 2007
Assets: 40,000
Liabilities: 26,500
During year 2007
Owner investiments: 1,400
Net income :?
Owner cash withdrawals: 2,000
2007-09-07 13:40:25 · 3 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
This makes the 3rd question you've asked within minutes of each other.
As with the first 2 questions, we cant help you do the problem unless you are either A) cheating..or B) you cannot tell us where you are stuck and exactly what you dont understand...
2007-09-11 11:14:31 · answer #1 · answered by I Can Count To Potato 7 · 0⤊ 0⤋
Read the chapter this question came from. The answer is there. I forgot too much since I sold my accounting books.
My guess goes as follows:
Net assets on 1-1-2007 = 34,000 - 21,500 = 12,500
Net assets on 12-31-2007 - 40,000 - 26,00 = 13,500
Net increase in assets = 13,500 - 12,500 - 1,000
Net owner withdraw = 2,000 - 1,400 = 600
Net income must account for both.
Net income = 1000 + 600 = 1,600.
2007-09-07 21:52:23 · answer #2 · answered by STEVEN F 7 · 1⤊ 0⤋
Is there anything else that goes along with this question?
2007-09-07 20:51:40 · answer #3 · answered by Milosmommy 2 · 0⤊ 0⤋