Answer:
a. $7,000
b. $39,500
c. $19,000
Explanation:
a. The computation of the net income or net loss is shown below:
= (June 30,2018 assets - June 30,2018 liabilities - contribution) - (May 31,2018 assets - May 31,2018 liabilities)
= ($209,000 - $99,000 - $25,000) - ($211,000 - $133,000)
= $85,000 - $78,000
= $7,000
b. The computation of the net income or net loss is shown below:
= (June 30,2018 assets - June 30,2018 liabilities + cash withdrawn) - (May 31,2018 assets - May 31,2018 liabilities)
= ($209,000 - $99,000 + $7,500) - ($211,000 - $133,000)
= $117,500 - $78,000
= $39,500
c. The computation of the net income or net loss is shown below:
= (June 30,2018 assets - June 30,2018 liabilities + cash withdrawn - contribution) - (May 31,2018 assets - May 31,2018 liabilities)
= ($209,000 - $99,000 + $22,000 - $35,000) - ($211,000 - $133,000)
= $97,000 - $78,000
= $19,000
