Custom Bundle: Accounting, Loose-leaf Version, 26th + Working Papers, Chapters 1-17, 26th Edition
26th Edition
ISBN: 9781305714731
Author: Warren/Reeve/Duchac
Publisher: Cengage
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Chapter 1, Problem 1.5BPE
To determine
Statement of owners’ equity:
This statement reports the beginning owner’s equity and all the changes which led to ending owners’ equity. Additional capital, net income from income statement is added to and drawings are deducted from beginning owner’s equity to arrive at the end result, ending owner’s equity.
To prepare: Statement of Owners’ Equity of ST Service for the year ended August 31, 2016
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Statement of Owner's Equity
Xavier Heffner owns and operates Heffner Advertising Services. On January 1, 2018, Xavier Heffner, Capital had a balance of $255,100. During the year, Xavier invested an additional $12,800 and withdrew $89,300. For the year ended December 31, 2018, Heffner Advertising Services reported a net income of $72,300.
Prepare a statement of owner's equity for the year ended December 31, 2018. Use the minus sign to indicate negative values.
The following balances were retrieved from the records of Carlo's Janitorial Services for the year ended December 31, 2016:
•Capital, January 1, 2016 P 500,000
•Withdrawals P 100,000
•Additional Investments P 50,000
•Net Loss P 45,000
Prepare a Statement of Changes in Owner's Equity
Financial Statements
We-Sell Realty, organized August 1, 2016, is owned and operated by Omar Farah.
We-Sell Realty
Income Statement
August 31, 2016
Sales commissions
$140,000
Expenses:
Office salaries expense
$87,000
Rent expense
18,000
Automobile expense
7,500
Miscellaneous expense
2,200
Supplies expense
1,150
Total expenses
115,850
Net income
$25,000
Omar Farah
Statement of Owner's Equity
August 31, 2015
Omar Farah, capital, August 1, 2016
$0
Less withdrawals during August
10,000
$(10,000)
Investment on August 1, 2016
15,000
$5,000
Net income for August
25,000
Omar Farah, capital, August 31, 2016
$30,000
Balance Sheet
For the Month Ended August 31, 2016
Assets
Liabilities
Cash
$8,900
Accounts receivable
$38,600
Accounts payable
22,350
Supplies
4,000
Owner's Equity
Omar Farah, capital
30,000
Total assets
$31,250
Total liabilities and owner's equity…
Chapter 1 Solutions
Custom Bundle: Accounting, Loose-leaf Version, 26th + Working Papers, Chapters 1-17, 26th Edition
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