(L. OBJ. 7, 8) Using the accounting equation and analyzing business transactions [5—10 m...

(L. OBJ. 7, 8) Using the accounting equation and analyzing business transactions [5—10 min]

Bell Computers’ balance sheet data at May 31, 2010, and June 30, 2010, follow:

Requirement

1. Following are three situations about owner’s investments and withdrawals from the business during June. For each situation, compute the amount of net income or net loss during June 2010.

a. The owner invested $5,000 and made no withdrawals.

b. The owner invested nothing and made $14,000 of withdrawals.

c. The owner invested $15,000 and made $28,000 of withdrawals.