Hannah Roberts owns and operates Hannah's Pool Service Company. On January 1, Hannah Roberts, Capital had a balance of $306,770. During the year, Hannah invested an additional $22,330 and withdrew $37,660. For the year ended December 31, Hannah's Pool Service Company reported a net income of $65,160. Prepare a statement of owner's equity for the year ended December 31.
Hannah Roberts owns and operates Hannah's Pool Service Company. On January 1, Hannah Roberts, Capital had a balance of $306,770. During the year, Hannah invested an additional $22,330 and withdrew $37,660. For the year ended December 31, Hannah's Pool Service Company reported a net income of $65,160. Prepare a statement of owner's equity for the year ended December 31.
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter15: Investments And Fair Value Accounting
Section: Chapter Questions
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Hannah Roberts owns and operates Hannah's Pool Service Company. On January 1, Hannah Roberts, Capital had a balance of $306,770. During the year, Hannah invested an additional $22,330 and withdrew $37,660. For the year ended December 31, Hannah's Pool Service Company reported a net income of $65,160.
Prepare a statement of owner's equity for the year ended December 31.
Expert Solution
Step 1
Formula:
Statement of owners equity = Beginning capital + Additional capital + Net profit - drawings
Deduction of drawings from Beginning capital , additional capital and net profit.
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