Chapter 2, Problem 15E

A corporation had the following assets and liabilities at the beginning and end of this year.

Determine the net income earned or net loss incurred by the business during the year for each of the following separate cases:

1. Owner made no investments in the business, and no dividends were paid during the year.
2. Owner made no investments in the business, but dividends were $1,250 cash per month.
3. No dividends were paid during the year, but the owner did invest an additional $55,000 cash in exchange for common stock.
4. Dividends were $1,250 cash per month, and the owner invested an additional $35,000 cash in exchange for common stock.