pdf

School

Strayer University *

*We aren’t endorsed by this school

Course

100

Subject

Finance

Date

Jan 9, 2024

Type

pdf

Pages

2

Uploaded by AgentJellyfish14443

Report
4/11/2018 ALEKS Yvette Jackson - 04/11/2018 3:03:30 PM EDT - Copyright © 2018 UC Regents and ALEKS Corporation https://www-awh.aleks.com/alekscgi/x/Isl.exe/1o_u-IgNsIkr7j8P3jH-lJx7HFZvJt13djia3s82hwNJCkjOXPdkFalBiKoodtE9PQsHRIrCunLjLjCrLxcL1Kypx4H3wEgmb0J1B 1. Yvette Jackson - 04/11/2018 3:03:30 PM EDT College Principles of Accounting (Sole Proprietorship) / 1184 ACC100 Spring 2018 – ACC100378VA016-1184-001Â (KHAN-SHAGHAGHI) Changes to owner's equity: Problem type 1 Presented below is information related to Russell Company. Required: Compute Drawing . Before solving for drawing, it is helpful to review the basic equation used to determine ending capital. Ending capital = Beginning capital + Change in capital Changes in capital are the result of the owner investing additional cash, net income or net loss from operating the business, and the withdrawal of funds (drawing) by the owner. Change in capital = Additional investments by owner + Net income - Drawing There are two steps required to solve for drawing. Step 1: Calculate the amount of the change in capital. Since drawing is one component of the change, knowing the amount of the change is necessary to solve the problem. Modify the basic equation for capital to calculate the amount of change in capital. Change in capital = Ending capital - Beginning capital = $43,200 - $33,700 = $9,500 Now that the change has been calculated, we can calculate the drawing. Step 2: Calculate the drawing using the following formula. Beginning capital Ending capital Additional investments by owner Net income Drawing $ 33,700 43,200 5,000 7,100
4/11/2018 ALEKS Yvette Jackson - 04/11/2018 3:03:30 PM EDT - Copyright © 2018 UC Regents and ALEKS Corporation https://www-awh.aleks.com/alekscgi/x/Isl.exe/1o_u-IgNsIkr7j8P3jH-lJx7HFZvJt13djia3s82hwNJCkjOXPdkFalBiKoodtE9PQsHRIrCunLjLjCrLxcL1Kypx4H3wEgmb0J1B Drawing = Additional investments by owner + Net income - Change in capital = $5,000 + $7,100 - $9,500 = $2,600 Here is the the answer. Copyright © 2018 UC Regents and ALEKS Corporation Beginning capital Ending capital Additional investments by owner Net income Drawing $ 33,700 43,200 5,000 7,100 2,600
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help