Lily company had the following assets and liabilities on

Question

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

Lily began business on January 1, 2009, with an investment of $100,000.

Instructions

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

(a) 2009, assuming Lilys drawings were $5,000 for the year.

(b) 2010, assuming Lily made an additional investment of $50,000 and had no drawings in 2010.

(c) 2011, assuming Lily made an additional investment of $15,000 and had drawings of $30,000 in 2011.