[lslaughter]

I am brand new to accounting. I am very excited, as I really want to do this. The only thing is, my instructor has a very thick accent, and is hard to understand. I'm not looking for the answer, just how to get to it. I'm feeling kind of lost. Here's my problem:
These data, exclusive of amount of owner's equity, are shown on a balance sheet:
Beg. Of year: Total Assets $810,000 Total Liabilities $324,000
End of year: Total Assets $1,296,000 Total Liabilities $540,000
On the basis of the above data, determine the net income or loss.
I understand how to determine the OE, but this would have to do with the difference in OE.. not sure how to get there. Do you subtract beg. Of year OE from end of year OE?
Also, I am getting ridiculous amounts trying to determine net income/loss... I know the answer is close, but I'm just not sure how to get there, and the book is not clear (or I'm obviously missing out on something). I feel so stupid. Can you help me?

[rehmanvohra]

Yes, you deduct beginning OE from the ending OE, to get the net increase or decrease in OE.

Since your question does not give any information about the additional investment, and or withdrawals, you may assume that the resulting increase in OE is net income.

[morgaine300]

Since many of these types of problem include different scenarios, such as no investments or withdrawals, then xxxxx amount of withdrawal, etc. if you have anything that includes investment and/or withdrawal, most students find it easier to start with the beginning, add or subtract the given amounts, and then figure the difference between that sub-total and the ending balance. That is, rather that getting the difference between beginning and ending, and then trying to "account for" the change, which is not as straight-forward. (Unless of course you only have net income/loss.)