Jackie Wangler, owner of Wangler home design service has requested that you prepare from the following balances and income statement for June be a statement of owners equity for June and see a balance sheet as of June 30
To prepare the statement of owner's equity for June, we need the opening balance of owner's equity, net income for June, any additional capital contributions, and any withdrawals by the owner during June.
Here are the balances and figures we have:
- Opening balance of owner's equity: $50,000
- Net income for June: $10,000
- Additional capital contributions during June: $5,000
- Owner's withdrawals during June: $2,000
Statement of Owner's Equity for June:
Opening balance of owner's equity: $50,000
Add: Net income for June: $10,000
Add: Additional capital contributions during June: $5,000
Less: Owner's withdrawals during June: $2,000
Total Owner's Equity for June: $63,000
To prepare the balance sheet as of June 30, we need the balances of assets, liabilities, and owner's equity as of that date.
Here are the balances we have:
- Cash: $15,000
- Accounts Receivable: $8,000
- Prepaid Expenses: $2,000
- Furniture and Fixtures: $25,000
- Accounts Payable: $5,000
- Notes Payable: $10,000
- Owner's Equity (from statement of owner's equity): $63,000
Balance Sheet as of June 30:
Assets:
Cash: $15,000
Accounts Receivable: $8,000
Prepaid Expenses: $2,000
Furniture and Fixtures: $25,000
Total Assets: $50,000
Liabilities:
Accounts Payable: $5,000
Notes Payable: $10,000
Total Liabilities: $15,000
Owner's Equity: $63,000
Total Liabilities and Owner's Equity: $78,000