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




December 31



Total Assets



Total Liabilities



2013

$461,492

$261,140


2014

$521,492

$311,140


2015

$651,492

$411,140



Iverson began business on January 1, 2013, with an investment of $98,231.

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

(a) 2013, assuming Iverson’s drawings were $18,438 for the year.



Net income for 2013

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



(b) 2014, assuming Iverson made an additional investment of $43,816 and had no drawings in 2014.



Net loss for 2014

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



(c) 2015, assuming Iverson made an additional investment of $19,655 and had drawings of $32,794 in 2015.



Net income for 2015

$

What do YOU think ?
While we're happy to HELP we wont do all the work for you.
Show us what you have done and where you are having problems..

You have to know 2 formulas to solve this type of problem.

No 1: The basic accounting equation, which is Assets = Liabilities + Owners Equity
This can be rewritten as: Owners Equity = Assets - Liabilities

No 2: The changes in equity formula, which is Beginning Owners Equity + Owner investments - Owner Withdrawals + Net Income (Revenues - Expenses) = Ending Owners Equity.
You can rewrite this equation to solve for an unknown amount.