One Item Is Omitted in Each of the Following Summaries $\quad$

question 14

Essay

One item is omitted in each of the following summaries of balance sheet and income statement data for three different sole proprietorships X Y and Z. Determine the amounts of the missing items identifying each proprietorship by letter. $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\underline{\text { Proprietorship} }$
$\begin{array}{lrrr}&\underline{ \mathrm{X}} &\underline{ \mathrm{Y}} &\underline{ \mathrm{Z}} \\\text { Beginning of the Year: }\\\text { Assets } & \$ 390,000 & \$ 150,000 & \$ 215,000 \\\quad \text { Liabilities } & 240,000 & 105,000 & 168,000 \\\text { End of the Year: } & \\\quad \text { Assets } & 450,000 & 175,000 & 195,000\\\quad \text { Liabilities } & 275,000 & 90,000 & 170,000 \\\text { During the Year: } & \\\quad \text { Additional Investment by the owner } & \underline{? } &74,000 & 80,000 \\\quad \text { Withdrawals by the owner } & 95,000 && 83,000 & \underline{? }\\\text { Revenue } & 195,000 & ? & 185,000 \\\text { Expenses } & 160,000 & 113,000 & 175,000\end{array}$

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Definitions:

Diminishing-Balance Method

A method of calculating depreciation of an asset, where the asset loses value at a fixed percentage rate every year over its useful life.

Straight-Line Depreciation

Straight-Line Depreciation is a method of allocating the cost of a tangible asset over its useful life in a linear fashion.

Taxable Income

Refers to the amount of an individual's or a corporation's income used to determine how much tax is owed to a government in a given tax year.

Canada Revenue Agency

The federal agency responsible for administering tax laws for the Canadian government and for most provinces and territories.