Statement of Owner's Equity I've tried to get it to balnce with the amount of on my balance sheet of $54,500.00 but can not can you help
Cash… …… ……… … … … ………$21,500
Accounts Receivable………17,500
Office Supplies…… … ………500
Equipment…… …… … …… …15,000
Accounts Payable… …… ……9,750
Rya Page, Capital… …………28,200
Rya Page, Drawing………………5,000
Planning Fees Income………26,250
Office Supplies Expense……200
Rent Expense…… ……… … ………800
Salaries Expense…… … ………3,000
Utilities Expense………… ……700
Sorry about that I have added Below are my balance sheet and income statement now the statment of owners equity is the beginig capital 28,2800 plus the net income 21,550 which is 49,750 less withdrawls 5,000 equals 44,750 which does not equal my assets. I cannot figure out what I am doing wrong.
Balance Sheet
Assets:
Cash $21,500
Accounts Receivable 17,500
Office Supplies 500
Equipment 15,000
Total Assets 54,500
Liabilities
Accounts Payable 9,750
Total Liabilities 9,750
Owner's Equity
Raya Page, Beg. Capital 28,200
Raya Page, End. Capital 37,950
Income Statement
Planning Fees Income $26,250
Total Income $26,250
Less:
Office Supplies Expenses $200
Rent Expense 800
Salaries Expense 3,000
Utilities Expense 700
Total Expenses (4,700)
Net Income $21,550
To balance the Statement of Owner's Equity, you need to calculate the net income and the drawings of the owner. The formula for the Statement of Owner's Equity is:
Beginning Capital + Net Income - Drawings = Ending Capital
Let's break down the information provided to calculate the net income and the ending capital:
Net Income:
To calculate the net income, you need to subtract all the expenses from the planning fees income:
Net Income = Planning Fees Income - Office Supplies Expense - Rent Expense - Salaries Expense - Utilities Expense
Net Income = $26,250 - $200 - $800 - $3,000 - $700
Net Income = $21,550
Drawings:
The amount of the owner's drawings is given as $5,000.
Ending Capital:
Using the formula mentioned earlier, we can calculate the ending capital:
Ending Capital = Beginning Capital + Net Income - Drawings
We don't have the beginning capital mentioned in the question, so let's assume it to be zero:
Ending Capital = 0 + $21,550 - $5,000
Ending Capital = $16,550
Now, to balance the Statement of Owner's Equity with the balance sheet amount of $54,500, you need to compare the calculated ending capital with the amount on the balance sheet.
If the balance sheet amount is different from $16,550, there might be some errors in the calculations or missing information. Double-check the numbers and review the transactions to ensure accuracy.
Please note that this explanation assumes the information provided is accurate and complete.