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25 September, 18:33

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.

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  1. 25 September, 18:38
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    Hannah's Pool Service Company

    Statement of owner equity for the year ended December 31

    Particulars Amount

    Capital (January 1) $309,170

    Investment during the year $22,040

    Net Income $55,080

    Withdrawals during the year (-$39,010)

    Increase in the owner equity $38,110

    Capital (December 31) $347.280

    Workings

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

    =$22040+$55080 - $39010

    =$38110

    b. Capital (December 31) = Capital on January 1 + Increase in owner equity

    =$309170 + $38110

    =$347280
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