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 $180,000 at April 1, the beginning of the current year. Mr. Thompson invested an additional $25,000 in the business during the year.AccountsAmountAccountsAmountAccounts payable$2,000Miscellaneous expense$1,030Accounts receivable10,340Office expense1,240Cash21,420Supplies1,670Fees earned73,450Wages expense23,550Land47,000Drawing16,570Building157,630 Required: 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.

The income statement is as follows: The result of the table provided above is as follows:

Answered: The assets and liabilities of Thompson…

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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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 $180,000 at April 1, the beginning of the current year. Mr. Thompson invested an additional $25,000 in the business during the year.

Accounts	Amount	Accounts	Amount
Accounts payable	$2,000	Miscellaneous expense	$1,030
Accounts receivable	10,340	Office expense	1,240
Cash	21,420	Supplies	1,670
Fees earned	73,450	Wages expense	23,550
Land	47,000	Drawing	16,570
Building	157,630

Required:

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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