Hannah Roberts owns and operates Hannah\'s Pool Service Company. On January 1, H

Question

Hannah Roberts owns and operates Hannah's Pool Service Company. On January 1, Hannah Roberts, Capital had a balance of $309,170. During the year, Hannah invested an additional $22,040 and withdrew $39,010. For the year ended December 31, Hannah's Pool Service Company reported a net income of $55,080. Prepare a statement of owner's equity for the year ended December 31. Hannah's Pool Service Company Statement of Owner's Equity For the Year Ended December 31 Hannah Roberts, capital, January 1 Investment during year Net income Withdrawals during year Increase in Owner's equity Hannah Roberts, capital, December 31

Explanation / Answer

Solution-

Statement of owner equity for the year ended december 31

_____________________________________________________________

Note1 Increase in owner equity=Investment during the year + Net income - withdrawal during the year

=$22040+$55080 -$39010=$38110

Note 2- Hannah roberts capital december 31= Capital on January 1 + Increase in owner equity

=$309170 +$38110=$347280

Hannah Roberts Capital January 1 $309,170 Investment during the year $22040 Net Income $55080 Withdrawals during the year $39010 Increase in the owner equity(Note1) $38110 Hannah Roberts captital December 31(Note 2) $347280

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