A company began the accounting period with $50,000 in owner's capital, ended with $75,000 in owner's capital, and the owner withdrew $30,000 during the period for personal use. What was the company's net income or loss for the period?
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Answer:
Net Income = $55,000
Step-by-step explanation:
A company began the accounting period with $50,000 in owner's capital,
ended with $75,000
Profit at End = $75,000 - $50,000 = $25,000
But owner withdrew $30,000 during the period for personal use.
=> That will be also added in profit
Net Income = $25,000 + $30,000 = $55,000
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