Principles of Accounting

ok now here is another alternative to the problem. Using the same beg and ending assets and liabilities : We made an investment in to the business of 13,000 but made no withdrawals . This is really confusing to me . Can you show me step by step what you did to arrive at the answer .

I think I have it now Assets 220,000 - liabilites 130,000 = OE 90,000 OE 90,000 + investment 13,000 = 103,000 which is their net income for the year is this right ty

If you have time to help me with a few more question I would appreciate it ..........Thank you so much for your help.

Yes Principles of Accounting ..............Having trouble with Net incomes .......... If a Company has : Beginning of Year Assets of $140,000 and Liabilities of $55,000 End Of Year Assets of $ 220,000 and Liabilities of $130,000 No investments in for the year but made withdrawal of $22,000 during the year what is their Net Income or loss for the year

I try to help you.. Beginning of the year asset of $140,000,is the Asset you have,let say on your first opening of your business..at the end of the year,your End of the year assets is $220,000 meaning your asset grow at the end of the year equivalent to $80,000($220,000-$140,000).. Beginning of the year liabilities of,is a liabilities you have,let say on your first opening of your business..(i.e,Loan..etc)...at the end of the year,your end of the year liabilities is $130,000 meaning your liabilities increases by $75,000($130,000-55,000) your equity or net worth for the year end is $90,000($220,000-130,000)-$22,000 withdrawal your total EQUITY IS EQUAL TO $68,000 YOUR NET INCOME IS equal to REVENUE less EXPENSES or Sale less cost of sale less expenses.. IN this case, the transaction is limited we cannot derive at net income..

Thank you so much for f I need help again I will definitely be posting here . Thank You again Nexan.