A business has net assets of $70,000 at the beginning of the year and $80,000 at the end of the year. Drawings were $25,000 and a lottery win of $5,000 was paid into the business during the year. What was the profit for the year? A $10,000 loss B $30,000 profit C $10,000 profit D $30,000 loss

A business has net assets of $70,000 at the beginning of the year and $80,000 at the end of the year. Drawings were $25,000 and a lottery win of $5,000 was paid into the business during the year. What was the profit for the year? A $10,000 loss B $30,000 profit C $10,000 profit D $30,000 loss

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 15EA: Farmington Corporation began the year with a retained earnings balance of $20,000. The company paid...

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Question

A business has net assets of $70,000 at the beginning of the year and $80,000 at the end of the year.

Drawings were $25,000 and a lottery win of $5,000 was paid into the business during the year. What was

the profit for the year?

A $10,000 loss

B $30,000 profit

C $10,000 profit

D $30,000 loss

Definition Definition Amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item

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