Question
Asked Jan 9, 2019
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What item of financial or operating data appears on both the income statement and the statement of owners equity?

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Expert Answer

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Step 1

The Income statement of a given period, state all the revenues earned and expenditure incurred during the period. The total revenues are added and the expenditures are subtracted to arrive at the net profit/loss earned during the period. This profit/loss earned during the periodforms part of owner’s equity.

The statement of owner’s equity shows the net balance which belongs to the equity stockholders. It is represented in the following manner

Statement of owner’s equity as on XXXXX

Opening Balance

 

Xxxx

Add. Further Capital issued during the year

 

xxxx

Add. Profit/(loss) earned during the year

 

xxxx

Less. Dividends distributed...

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