An analysis of transactions for Peat DeLoitte & Co. was presented
in E1.8.
Instructions
Prepare an income statement and an owners equity statement for August and a balance sheet at August
31, 2020. Assume that August is the companys first month of business.
E1.10 (LO 5) Hawke Company had the following assets and liabilities on the dates indicated.
December 31 Total Assets Total Liabilities
2019 $400,000 $250,000
2020 $460,000 $300,000
2021 $590,000 $400,000
Hawke began business on January 1, 2019, with an investment of $100,000.
Instructions
From an analysis of the change in owners equity during the year, compute the net income (or loss) for:
a. 2019, assuming Hawkes drawings were $12,000 for the year.
b. 2020, assuming Hawke made an additional investment of $34,000 and had no drawings in 2020.
c. 2021, assuming Hawke made an additional investment of $12,000 and had drawings of $25,000 in 2021