Textbook Problem

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:

	Total Assets	Total Liabilities
Beginning of the year	$550,000	$215,000
End of the year	844,000	320,000

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Mars: The owner had made no additional investments in the business but had withdrawn $36,000.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Venus: The owner had made an additional investment of $60,000 and had withdrawn $36,000.