Need help with onwer\'s equity statement Exercise 1-16 Presented below is inform
ID: 2337720 • Letter: N
Question
Need help with onwer's equity statement
Exercise 1-16 Presented below is information related to the sole proprietorship of Helen Archer, attorney. Legal service revenue-2020 Total expenses-2020 Assets, January 1, 2020 Liabilities, January 1, 2020 Assets, December 31, 2020 Liabilities, December 31, 2020 Drawings-2020 $330,000 211,000 98,000 62,000 168,000 100,000 Prepare the 2020 owner's equity statement for Helen Archer's legal practice. (List items that increase owner's equity first.) HELEN ARCHER, ATTORNEY Owner's Equity Statement olicy l 2000-2013JohnyyleyAsons.!nc. All Rights Reserved. A Division of JohnWle.asons. Inc.Explanation / Answer
Answer:
Helen archer attorney
owner's Equity statement
For the year Ended December 31-2020
Particular
Amount $
Owner's capital , January 1
36,000
Add net income
119,000
155,000
less: Drawing (155000-68000)
87,000
Owner's capital , December 1
68,000
Working notes for the above a Answer is as under
1
Calculation of the Total Equity at beginning of the year
Assets at January 1, 2020
98000
Less: Liabilities at January 1, 2020
62,000
Equity
36,000
2
Calculation of the Total Equity at the end of year
Assets at December 31, 2020
168000
Less: Liabilities at December 31, 2020
100,000
Equity
68,000
3
Calculation of the Net income
Legal service revenue
330,000
Less: Total expense
211000
Net income
119,000
Helen archer attorney
owner's Equity statement
For the year Ended December 31-2020
Particular
Amount $
Owner's capital , January 1
36,000
Add net income
119,000
155,000
less: Drawing (155000-68000)
87,000
Owner's capital , December 1
68,000
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