Total Assets Total Liabilities Beginning of the year $550,000 $215,000 End of the year 844,000 320,000
Net income and owner's equity for four businesses
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 owner's 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 owner's 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 instments 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but had withdrawn $36,000.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had withdrawn $36,000.
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