Using the accounting equation to analyze business transactionsGreat City Builders balance...

Using the accounting equation to analyze business transactions

Great City Builders balance sheet data at May 31, 2012, and June 30, 2012, follow:

Requirement

1. Following are three situations about owner’s investments and drawings of the business during June. For each situation, compute the amount of net income or net loss during June 2012.

a. The owner invested $6,000 in the business and made no withdrawals.

b. The owner made no investments. The owner withdrew cash $10,000.

c. The company owner made investments of $18,000 and withdrew cash of $20,000.