Answer:
a. $32,039
b. $19,439
c. -$12,961
d. $9,639
Explanation:
We will use accounting equation to solve the above question.
Assets = Liabilities + Equity
Also;
Net income will be the difference in equity plus dividends minus contributions
= [Ending equity - Beginning equity ] + Dividends
Since the beginning and ending equity is the same for all the years, then we'll have
$71,500 = $30,652 + Equity
Equity = $40,848
Ending equity = $122,500 - $49,613
= $72,887
a. Income : $72,887 - $40,848 + 0 - 0
= $32,039
b. $72,887 - $40,848 + $1,050 × 12 - 0
= $19,439
c. $72,887 - $40,848 + 0 - $45,000
= -12,961
d. $72,887 - $40,848 + $1,050 × 12 - $35,000
= $32,039 + $12,600 - $35,000
= $9,639
