Gail Stocken was reviewing her business activities at the end of the year (2016) and decided to prepare an Owner's Equity Statement. At the beginning of the year her assets were $485000 and her liabilities were $210000. At the end of the year the assets had grown to $750000 but liabilities had also increased to $380000. The net income for the year was $220000. Gail had withdrawn $125000 during the year for her personal use.
Prepare an owner's equity statement in good form.

Question

Wanting Jiang · Accepted Answer

Final Answer :  GAIL STOCKEN Owner’s Equity Statement  For the Year Ended 2016  Owner’s Beginning Capital  $ 275 , 000  Add: Net Income  220 , 000 ‾ 495 , 000  Less: Drawings  125 , 000 ‾ Owner’s Ending Capital  $ 370 , 000 ‾ \begin{array}{c}	ext {GAIL STOCKEN}\	ext {Owner ' s Equity Statement}\	ext { For the Year Ended 2016}\\\begin{array}{lrr}  	ext { Owner ' s Beginning Capital }  & \$275,000\ 	ext { Add: Net Income }  & \underline{220,000}\  & 495,000\ 	ext { Less: Drawings }  & \underline{125,000}\ 	ext {Owner ' s Ending Capital  }  & \underline{\$370,000}\\end{array}\end{array} GAIL STOCKEN Owner’s Equity Statement  For the Year Ended 2016  Owner’s Beginning Capital   Add: Net Income   Less: Drawings  Owner’s Ending Capital  ​ $275 , 000 220 , 000 ​ 495 , 000 125 , 000 ​ $370 , 000 ​ ​ ​

Definitions

Learning Objectives

Learning Objectives

Related questions