QUESTION 2:Part i:- (STATEMENT OF OWNER'S EQUITY)A business has $100,000 of capital at the beginning of a reportingperiod. The entity earns $15,000 of income, and the ownerwithdraws $5,000 from the capital account. Prepare a statementof owner's equity that displays an ending capital balance. Theending equity balance will be carried forward to the followingperiod and become the beginning balance, and(FORMS OF BUSINESS ORGANIZATION)QWIK Software Company has assets of $850,000 and liabilitiesof $460,000.a. a. Prepare the ownership equity section of QWIKS balancesheet under each of the following independent assumption:1. The business is organized as a sole proprietorship. Ownedby Mr. khurram ali.2. The business is organized as a partnership owned by Mr.khurram ali. And Mr.Bilal Ahamd. Mr. khurram ali's equityamount to $240,000.3. The business is a corporation with 25 stockholder, each ofwhom originally invested $10,000 in exchange for shares ofthe company' capital stock the remainder of the stockholder's equity has resulted from profitable operation of thebusiness.b. Assume that you are a loan officer at security bank. QWIK hasapplied to your bank for a large loan to finance the developmentof new products is it likely to matter to your whether QWIK isorganized as a sole proprietorship, a partnership, or acorporation? Explain?

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A business has $100,000 of capital at the beginning of a reporting period. The entity earns $15,000 of income, and the owner withdraws $5,000 from the capital account. Prepare a statement of owner's equity that displays an ending capital balance. The ending equity balance will be carried forward to the following period and become the beginning balance, and

A business has $100,000 of capital at the beginning of a reporting period. The entity earns $15,000 of income, and the owner withdraws $5,000 from the capital account. Prepare a statement of owner's equity that displays an ending capital balance. The ending equity balance will be carried forward to the following period and become the beginning balance, and

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter1: Accounting And The Financial Statements

Section: Chapter Questions

Problem 15CE: Cornerstone Exercise 1-15 Using the Accounting Equation At the beginning of the year, Morgan Company...

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