Concept explainers
Introduction:
Income Statement: The income statement is also called a
Statement of Owner’s Equity: The statement of owner’s equity is the statement which shows the increase or decrease in equity shareholders fund within an accounting period. This is increased by profits/ gains to shareholders during the year while the amount distributed to shareholders are shown as deductions.
To prepare: The income statement and statement of owner’s equity for the month ended December 31, 2016 and then prepare the balance sheet as on December 31, 2016.
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Horngren's Accounting (11th Edition)
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