On January 2, Daniel Harrison contributed $20,300 to start his business. At the
ID: 2478541 • Letter: O
Question
On January 2, Daniel Harrison contributed $20,300 to start his business. At the end of the year, the business had generated $30,300 in sales revenues, incurred $18,150 in operating expenses, and distributed $5,300 for Daniel to use to pay some personal expenses.
Prepare a statement of owner’s equity, assuming this is a sole proprietorship.
2. Prepare the owner’s equity section of the balance sheet, assuming this is a sole proprietorship.
3. Prepare the stockholder’s equity section of the balance sheet, assuming this is a corporation with no-par value stock.
On January 2, Daniel Harrison contributed $20,300 to start his business. At the end of the year, the business had generated $30,300 in sales revenues, incurred $18,150 in operating expenses, and distributed $5,300 for Daniel to use to pay some personal expenses.
Explanation / Answer
1 Statement of Owners Equity Opening capital 20300 Net Income ( 30300-18150) 12150 Less: Withdrawals -5300 Closing Capital 27150 3 Corporate Capital 20300 Retained earnings 12150 Shareholders Equity 32450
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