The Accounts of Odie Company with the Increases or Decreases

question 48

Short Answer

The accounts of Odie Company with the increases or decreases that occurred during the past year are as follows:
$$\begin{array} { l c c } \text { Account } & \text { Increase } & \text { Decrease } \\\hline \text { Cash } & \$ 25,000 & \\\text { Accounts receivable } & & \$ ( 5,000 ) \\\text { Accounts payable } & & ( 11,000 ) \\\text { Notes payable } & 16,000 &\end{array}$$
Except for net income, an investment of $3,000 by the owner, and a withdrawal of $11,000 by the owner, no other items affected owner's equity. Using the balance sheet equation, compute net income for the past year.

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