Jerry's Butcher Shop, Inc If Jerry Invested an Additional $12,000 in the Business During

question 144

Essay

Jerry's Butcher Shop, Inc. had the following assets and liabilities at the beginning and end of the current year:
$\begin{array}{llcc} & \text { Assets} &\text { Liabilities }\\ \text { Beginning of the year ............ } &\$114,000& \$68,000\\ \text { End of the year ......................} &135,000&73,000\\\end{array}$

If Jerry invested an additional $12,000 in the business during the year, but withdrew no assets during the year, what was the amount of net income earned by Jerry's Butcher Shop, Inc.?

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Definitions:

Bulk Sale

A transaction where a business sells its inventory or a significant portion of its goods all at once, usually under conditions other than the ordinary course of business.

Bankruptcy Legislation

Laws and regulations governing the process of bankruptcy, providing a legal framework for dealing with debt unable to be paid by an individual or entity.

Preference

A prioritization or favoring of certain options, creditors, or interests over others, often relevant in legal and financial contexts.

General Contractor

A primary contractor responsible for overseeing a construction project, managing subcontractors, and ensuring the work is completed as specified in the contract.