I need help answering the first and how to get to that answer and I will figure out the rest of it hopefully. I am new to accounting and I am also lost when it comes to this question. Andruw Company had the following assets and liabilities on the dates indicated.




December 31



Total Assets



Total Liabilities



2011

$494,395

$284,792


2012

$554,395

$334,792


2013

$684,395

$434,792



Andruw began business on January 1, 2011, with an investment of $95,308.

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 $20,484 for the year.



Net income for 2011

$



(b) 2012, assuming Andruw made an additional investment of $42,366 and had no drawings in 2012.



Net loss for 2012

$http://edugen.wiley.com/edugen/art2/common/pixel.gif



(c) 2013, assuming Andruw made an additional investment of $16,566 and had drawings of $34,429 in 2013.



Net income for 2013

$http://edugen.wiley.com/edugen/art2/common/pixel.gif

First you have to know the basic accounting equation, which is:
Assets = Liabilities + Owners Equity
You should be able to get your owners equity for the end of each year.

The ending year amount is the beginning amount for the next year.

Now you have to account for the change in equity for each year. The formula for this is:
Ending Owners Equity = Beginning Owners Equity + Investments - Drawings or Dividends + Net Income (Revenues - Expenses)

This formula can be rewritten to find Net Income as:
Net Income = Ending Owners Equity - Beginning Owners Equity - invvestments + Drawings or Dividends