Accounting 26th Edition by Carl Warren,James Reeve,Jonathan Duchac

Exercise 20

Balance sheets, net income
Financial information related to the proprietorship of Ebony Interiors for February and March 2016 is as follows:

a. Prepare balance sheets for Ebony Interiors as of February 29 and March 31, 2016.
b. Determine the amount of net income for March, assuming that the owner made no additional investments or withdrawals during the month.
c. Determine the amount of net income for March, assuming that the owner made no additional investments but withdrew $50,000 during the month.