he assets and liabilities of Thompson Computer Services at March 31, the end of the current year, and its revenue and expenses for the year are listed below. The capital of the owner was $188,000 at April 1, the beginning of the current year. Mr. Thompson invested an additional $14,600 in the business during the year. Accounts Amount Accounts Amount Accounts payable $2,000 Miscellaneous expense $580 Accounts receivable 10,340 Office expense 300 Cash 21,420 Supplies 1,670 Fees earned 83,540 Wages expense 34,960 Land 47,000 Drawing 5,200 Building 154,970 Required: Labels For the Year Ended March 31 Amount Descriptions Additional investment by owner during year Decrease in owner’s equity Increase in owner’s equity Net income for the year Net loss for the year Thompson, capital, April 1 Thompson, capital, March 31 Withdrawals Prepare a statement of owner’s equity for Thompson Computer Services for the current year ended March 31. Be sure to complete the statement heading. Refer to the lists of Labels, and Amount Descriptions for the exact wording of the answer choices for text entries. If a net loss is incurred or there is a decrease in owner’s equity, enter that amount as a negative number using a minus sign.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The assets and liabilities of Thompson Computer Services at March 31, the end of the current year, and its revenue and expenses for the year are listed below. The capital of the owner was $188,000 at April 1, the beginning of the current year. Mr. Thompson invested an additional $14,600 in the business during the year.

Accounts	Amount	Accounts	Amount
Accounts payable	$2,000	Miscellaneous expense	$580
Accounts receivable	10,340	Office expense	300
Cash	21,420	Supplies	1,670
Fees earned	83,540	Wages expense	34,960
Land	47,000	Drawing	5,200
Building	154,970

Required:

	Labels
	For the Year Ended March 31
	Amount Descriptions
	Additional investment by owner during year
	Decrease in owner’s equity
	Increase in owner’s equity
	Net income for the year
	Net loss for the year
	Thompson, capital, April 1
	Thompson, capital, March 31
	Withdrawals

Prepare a statement of owner’s equity for Thompson Computer Services for the current year ended March 31. Be sure to complete the statement heading. Refer to the lists of Labels, and Amount Descriptions for the exact wording of the answer choices for text entries. If a net loss is incurred or there is a decrease in owner’s equity, enter that amount as a negative number using a minus sign.

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