# Net income/loss

Andruw Company had the following assets and liabilities on the dates indicated.

December 31

Total Assets

Total Liabilities
2011 \$476,248 \$176,010
2012 \$536,248 \$226,010
2013 \$666,248 \$326,010

Andruw began business on January 1, 2011, with an investment of \$98,783.

From an analysis of the change in owner’s equity during the year, compute the net income (or loss) for:

(a) 2011, assuming Andruw’s drawings were \$16,274 for the year.

Net income for 2011 \$

Net loss for 2012 \$

(c) 2013, assuming Andruw made an additional investment of \$23,522 and had drawings of \$28,218 in 2013.

Net income for 2013 \$

 pready Posts: 2,984, Reputation: 1011 Ultra Member #2 Sep 25, 2013, 11:51 AM
For 2011, 2012, and 2013 you first have to calculate Owners Equity, which is Assets minus Liabilities. Now you have to account for the change in the Owners Equity amount. So You start with the Owners Equity account balance minus the investment during the year plus the drawings amount during the year equals Net Income.

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