The Lim Company had the following assets and liabilities on the dates indicated. Lim began business on January 1, 2012, with an investment of $100,000.
Instructions
From an analysis of the change in equity during the year, compute the net income (or
loss) for:
(a) 2012, assuming Lim paid dividends of $25,000 for the year.
(b) 2013, assuming Lim made an additional investment of $60,000 and paid no dividends in 2013.
(c) 2014, assuming Lim made an additional investment of $10,000 and paid dividends of $30,000 in 2014.

Question

The Lim Company had the following assets and liabilities on the dates indicated.  Lim began business on January 1, 2012, with an investment of $100,000.
Instructions
From an analysis of the change in equity during the year, compute the net income (or
loss) for:
(a) 2012, assuming Lim paid dividends of $25,000 for the year.
(b) 2013, assuming Lim made an additional investment of $60,000 and paid no dividends in 2013.
(c) 2014, assuming Lim made an additional investment of $10,000 and paid dividends of $30,000 in 2014.

Quizplus · Accepted Answer

The Answer of The Lim Company had the following assets and liabilities on the dates indicated.  Lim began business on January 1, 2012, with an investment of $100,000.
Instructions
From an analysis of the change in equity during the year, compute the net income (or
loss) for:
(a) 2012, assuming Lim paid dividends of $25,000 for the year.
(b) 2013, assuming Lim made an additional investment of $60,000 and paid no dividends in 2013.
(c) 2014, assuming Lim made an additional investment of $10,000 and paid dividends of $30,000 in 2014.

The Lim Company Had the Following Assets and Liabilities on the Dates