Assets and Liabilities for Stan's Garage at the Beginning and End

question 45

Essay

Assets and liabilities for Stan's Garage at the beginning and end of the current accounting period are as follows: $\begin{array} { l c c } & \text { January 1 } & \text { December 31 } \\ \text { Total assets } & \$ 450,000 & \$ 690,000 \\ \text { Total liabilities } & \$ 325,000 & \$ 440,000 \end{array}$

a) $\text {Determine net income or net loss for the current year. The owner did not invest any additional assets during the year and made no withdrawals.}$
b) $\text {Determine net income or net loss for the current year. The owner invested an additional \(\$ 100,000\) of assets into the business during the year and made no withdrawals.}$