Chapter 1, Problem 5APSA

To determine

Statement of owner’s equity means a financial statement which describes change in the equity section of the balance sheet during a period (accounting period). Generally it reports the event or transaction that causes increase or decrease in the equity over a accounting period.

The statement of owner’s equity can be prepared by adding beginning equity balance to the net income and owner investment less any drawing made by the owner which results in the ending equity balance.

To determine:

We have to prepare statement of owner’s equity for Kojo Company for year ended December 31, 2015.