accounting principles 459471

E1-10

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

December 31
Total Assets
Total Liabilities

2009 $400,000 $250,000
2010 $460,000 $300,000
2011 $590,000 $400,000

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

Instructions

From an analysis of the change in owner’s equity during the year, compute the net income (or loss) for the following situations. (If a net loss, record amount using either a negative sign preceding the number eg -45 or parentheses eg (45).)

(a) 2009, assuming Lily’s drawings were $15,000 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.

$