May 31, 2018 june 30, 2018total assets $211,000 $209,000total liabilities 133,000 99,000begin by identifying the accounting equation and the formula expressed by the statement of owner's equity (the "equityequation"): (abbreviation used: account. = accounting.)account. equation: =equity equation: =for each of the following situations that occurred in june, 2018 with regard to own-er’s contributions and withdrawals, compute the amount of net income or net loss during june 2018.(use a minus sign or parentheses for a netloss.)a. the owner contributed $25,000 to the business and made no withdrawals. net income(loss) = $b. the owner made no contributions. the owner withdrew cash of $7,500.net income(loss) = $c. the owner made contributions of $35,000 and withdrew cash of $22,000.net income (loss) = $

a. $7,000

b. $39,500

c. $19,000

Explanation:

a. The computation of the net income or net loss is shown below:

= (June 30,2018 assets - June 30,2018 liabilities - contribution) - (May 31,2018 assets - May 31,2018 liabilities)

= ($209,000 - $99,000 - $25,000) - ($211,000 - $133,000)

= $85,000 - $78,000

= $7,000

b. The computation of the net income or net loss is shown below:

= (June 30,2018 assets - June 30,2018 liabilities + cash withdrawn) - (May 31,2018 assets - May 31,2018 liabilities)

= ($209,000 - $99,000 + $7,500) - ($211,000 - $133,000)

= $117,500 - $78,000

= $39,500

c. The computation of the net income or net loss is shown below:

= (June 30,2018 assets - June 30,2018 liabilities + cash withdrawn - contribution) - (May 31,2018 assets - May 31,2018 liabilities)

= ($209,000 - $99,000 + $22,000 - $35,000) - ($211,000 - $133,000)

= $97,000 - $78,000

= $19,000