Assume for each of the following independent cases that the annual accounting period ends on December 31. Revenues for the year were $145,000. Expenses for the year were $166,000. Case A: Assume that Rise Up Company is a sole proprietorship owned by Mrs. Rise. Prior to the closing entries, the capital account reflects a balance of $60,000 and the drawing account shows a balance of $13,000. Case B: Assume that RiseUp Company is a partnership owned by Mrs. Rise and Mr. Up. Prior to the closing entries, the owners' equity accounts reflect the following balances: Rise, Capital, $53,000; Up, Capital, $53,000; Rise, Drawings, $15,000; and Up, Drawings, $17,000. Profits and losses are divided equally. Case C: Assume that Rise Up Company is a corporation. 2. Show how the statement of owner's equity would appear at December 31 for Case A and Case B. Case A: Sole Proprietorship Case B: Partnership Complete this question by entering your answers in the tabs below. Case A Sole Proprietorship Case B Partnership Show how the statement of owner's equity would appear at December 31 for Case A: Sole Proprietorship. Statement of Owner's Equity Total < Case A Sole Proprietorship Case B Partnership >
Assume for each of the following independent cases that the annual accounting period ends on December 31. Revenues for the year were $145,000. Expenses for the year were $166,000. Case A: Assume that Rise Up Company is a sole proprietorship owned by Mrs. Rise. Prior to the closing entries, the capital account reflects a balance of $60,000 and the drawing account shows a balance of $13,000. Case B: Assume that RiseUp Company is a partnership owned by Mrs. Rise and Mr. Up. Prior to the closing entries, the owners' equity accounts reflect the following balances: Rise, Capital, $53,000; Up, Capital, $53,000; Rise, Drawings, $15,000; and Up, Drawings, $17,000. Profits and losses are divided equally. Case C: Assume that Rise Up Company is a corporation. 2. Show how the statement of owner's equity would appear at December 31 for Case A and Case B. Case A: Sole Proprietorship Case B: Partnership Complete this question by entering your answers in the tabs below. Case A Sole Proprietorship Case B Partnership Show how the statement of owner's equity would appear at December 31 for Case A: Sole Proprietorship. Statement of Owner's Equity Total < Case A Sole Proprietorship Case B Partnership >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Assume for each of the following independent cases that the annual accounting period ends on December 31. Revenues
for the year were $145,000. Expenses for the year were $166,000.
Case A: Assume that Rise Up Company is a sole proprietorship owned by Mrs. Rise. Prior to the closing entries, the capital
account reflects a balance of $60,000 and the drawing account shows a balance of $13,000.
Case B: Assume that RiseUp Company is a partnership owned by Mrs. Rise and Mr. Up. Prior to the closing entries, the
owners' equity accounts reflect the following balances: Rise, Capital, $53,000; Up, Capital, $53,000; Rise, Drawings,
$15,000; and Up, Drawings, $17,000. Profits and losses are divided equally.
Case C: Assume that Rise Up Company is a corporation.
2. Show how the statement of owner's equity would appear at December 31 for Case A and Case B.
Case A: Sole Proprietorship
Case B: Partnership
Complete this question by entering your answers in the tabs below.
Case A Sole
Proprietorship
Case B
Partnership
Show how the statement of owner's equity would appear at December 31 for Case A: Sole Proprietorship.
Statement of Owner's Equity
Total
<
Case A Sole Proprietorship
Case B Partnership >
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