Abbie Marson is the sole owner and operator of Great Plains Company. As of the end of its accounting period, December 31, Year 1, Great Plains Company has assets of $920,408 and liabilities of $272,707. During Year 2, Mason invested an additional $28,054 and withdrew $25,788 from the business. What is the amount of net income during Year 2, assuming that as of December 31, Year 2, assets were $985,846 and liabilities were $234,813

Abbie Marson is the sole owner and operator of Great Plains Company. As of the end of its accounting period, December 31, Year 1, Great Plains Company has assets of $920,408 and liabilities of $272,707. During Year 2, Mason invested an additional $28,054 and withdrew $25,788 from the business. What is the amount of net income during Year 2, assuming that as of December 31, Year 2, assets were $985,846 and liabilities were $234,813

Name: Abbie Marson is the sole owner and operator of Great Plains Company. A
Uploaded: 2024-03-05T11:47:04.000Z
Channel: Bartleby
Description: Abbie Marson is the sole owner and operator of Great Plains Company. As of the end of its accounting period, December 31, Year 1, GreatPlains Company has assets of $920,408 and liabilities of $272,707. During Year 2, Mason invested an additional $28,

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 2EB: CPK ** Associates is a mid-size legal firm, specializing in closings and real estate law in the...

See similar textbooks

Similar questions

Four different proprietorships, Jupiter, Mars, Saturn, and Venus, show the same balance sheet data at the beginning and end of a year. These data, exclusive of the amount of owners equity, are summarized as follows: On the basis of the preceding data and the following additional information for the year, determine the net income (or loss) of each company for the year. (Hint: First, determine the amount of increase or decrease in owners equity during the year.) Jupiter:The owner had made no additional investments in the business and had made no withdrawals from the business. Mars:The owner had made no additional investments in the business but had withdrawn 36,000. Saturn:The owner had made an additional investment of 60,000 but had made no withdrawals. Venus:The owner had made an additional investment of 60,000 and had withdrawn 36,000.
CPK ** Associates is a mid-size legal firm, specializing in closings and real estate law in the south. In 2019, they generated $945,000 in sales revenue. Their expenses related to this year’s revenue are shown: Based on the information provided for the year, what was their net operating income?
Abbie Marson is the sole owner and operator of Great Plains Company. As of the end of its accounting period, December 31, Year 1, Great Plains Company has assets of $925,918 and liabilities of $277,028. During Year 2, Marson invested an additional $28,516 and withdrew $25,851 from the business. What is the amount of net income during Year 2, assuming that as of December 31, Year 2, assets were $980,615 and liabilities were $236,767? a.$54,697 b.$40,261 c.$92,293 d.$25,851
Penny Lyman is the owner and operator of Go109, a motivational consulting business. At the end of its accounting period, December 31, 20Y1, Go109 has assets of $659,000 and liabilities of $165,000. Using the accounting equation and considering each case independently, determine the following amounts: Penny Lyman, capital, as of December 31, 20Y2, assuming that assets increased by $152,000 and liabilities decreased by $16,000 during 20Y2. Net income (or net loss) during 20Y2, assuming that as of December 31, 20Y2, assets were $782,000, liabilities were $196,000, and there were no additional investments or withdrawals.
Penny Lyman is the owner and operator of Go109, a motivational consulting business. At the end of its accounting period, December 31, 20Y1, Go109 has assets of $659,000 and liabilities of $165,000. Using the accounting equation and considering each case independently, determine the following amounts: a. Penny Lyman, capital, as of December 31, 20Y1.
Kim Hsu is the owner of Hsu's Financial Services. At the end of its accounting period, December 31, 2013, Hsu's has assets of $775,000 and owner's equity of $365,000. Using the accounting equation and considering each case independently, determine the following amounts. Hsu's liabilities as of December 31, 2013. Hsu's liabilities as of December 31, 2014, assuming that assets increased by $70,000 and owner's equity decreased by $25,000. Net income or net loss during 2014, assuming that as of December 31, 2014, assets were $692,000, liabilities were $590,000, and there were no additional investments or withdrawals.
Mullins Corp., a start‑up company, uses the accrual accounting method. In Year 1, Mullins provided services that were acceptable to its customers and billed those customers for $620,000. However, Mullins collected only $520,000 cash in Year 1, and the remaining $100,000 was collected in Year 2. Mullins’ employees earned $300,000 in Year 1 wages that were not paid until the first week of Year 2. Based only on this information, how much net income does Mullins report for Year 2?
Penny Lyman is the owner and operator of Go109, a motivational consulting business. At the end of its accounting period, December 31, 20Y1, Go109 has assets of $659,000 and liabilities of $165,000. Using the accounting equation and considering each case independently, determine the following amounts: a. Penny Lyman, capital, as of December 31, 20Y1.$fill in the blank 1 b. Penny Lyman, capital, as of December 31, 20Y2, assuming that assets increased by $88,000 and liabilities increased by $27,000 during 20Y2.$fill in the blank 2 c. Penny Lyman, capital, as of December 31, 20Y2, assuming that assets decreased by $151,000 and liabilities increased by $13,000 during 20Y2.$fill in the blank 3 d. Penny Lyman, capital, as of December 31, 20Y2, assuming that assets increased by $152,000 and liabilities decreased by $16,000 during 20Y2.$fill in the blank 4 e. Net income (or net loss) during 20Y2, assuming that as of December 31, 20Y2, assets were $782,000, liabilities were $196,000, and…
On December 1 of the current year, Rob Elliot invested $35,000 of his cash to form a proprietorship, GGE Enterprises. After all transactions have been entered into the accounting equation, the following are the ending balances for selected items on December 31. On that date, the financial statements were prepared. The statement of owner’s equity for GGE Enterprises reported Rob Elliot’s owner’s equity as of December 31 at $38,445. The balance sheet reported total liabilities and owner’s equity of $56,900. Accounts Accounts Rob Elliot, Rob Elliot, Fees Rent Supplies Utilities Wages Miscellaneous Cash Receivable Land Payable Capital Drawing Earned Expense Expense Expense Expense Expense ? 8,850 16,500 ? ? $6,000.00 $27,250.00 $6,400.00 ? $4,575.00 $1,235.00 $370.00 Review the following questions. Place an ‘X’ in the box to indicate which financial statement(s) report the desired information. Enter the amount reported…
On January 2, Daniel Harrison contributed $20,000 to start his business. At the end of the year,the business had generated $30,000 in sales revenues, incurred $18,000 in operating expenses, anddistributed $5,000 for Daniel to use to pay some personal expenses. Prepare ( a ) a statement ofowner’s equity, assuming this is a sole proprietorship; ( b ) the owner’s equity section of the balancesheet, assuming this is a sole proprietorship; and ( c ) the stockholder’s equity section of the balancesheet, assuming this is a corporation with no-par value stock.
Cude Corp., a start‑up company, uses the accrual basis of accounting. In Year 1, Cude provided services that were acceptable to its customers and billed those customers for $620,000. However, Cude collected only $520,000 cash in Year 1, and the remaining $100,000 was collected in Year 2. Cude’s employees earned $300,000 in Year 1 wages that were not paid until the first week of Year 2. Based only on this information, how much net income does Cude report for Year 2?
Dave Ryan is the owner and operator of Ryan's Arcade. At the end of its accounting period, December 31, Ryan's Arcade has assets of $628,470 and liabilities of $231,820. Using the accounting equation, determine the following amounts: a. Owner's equity as of December 31 of the current year.$fill in the blank 1 b. Owner's equity as of December 31 at the end of the next year, assuming that assets increased by $80,440 and liabilities increased by $18,050 during the year.