Reference no: EM13535400
Four different proprietorships, Alpha, Bravo, Charlie, and Delta, 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:
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Total
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Total
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Assets
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Liabilities
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Beginning of the year
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$1,350,000
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$540,000
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End of the year
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2,160,000
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900,000
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On the basis of the above data and the following additional information for the year, determine the net income (or loss) of each company for the year.
Alpha: The owner had made no additional investments in the business and had made no withdrawals from the business.
Bravo: The owner had made no additional investments in the business but had withdrawn $120,000.
Charlie: The owner had made an additional investment of $270,000 but had made no withdrawals.
Delta: The owner had made an additional investment of $270,000 and had withdrawn $120,000.