To determine Concept Introduction Owner’s Equity: Owner’s Equity is the total amount of assets that are owned by the owner (or owners) of an entity, minus the total amount of liabilities. Statement of owner’s equity (or Statement of changes in owner’s equity): Statement of owner’s equity is a financial statement that shows the events or transactions that cause the increase or decrease in owner’s equity from the beginning to the end of the period. To Compute: The missing amount for each of the given separate companies a through d . Explanation Given: For Company a , owner’s equity at the beginning of the period i.e. equity as of December 31, 2014 amounts to $0; owner’s investments during the year amount to $110,000; net income amounts to $22,000; and owner’s equity at the end of the period i.e. equity as of December 31, 2015 amounts to $104,000. The missing amount is for the owner’s withdrawals during the year. For Company b , owner’s equity at the beginning of the period i.e. equity as of December 31, 2014 amounts to $0; owner’s withdrawals during the year amount to $47,000; net income amounts to $90,000; and owner’s equity at the end of the period i.e. equity as of December 31, 2015 amounts to $85,000. The missing amount is for the owner’s investments during the year. For Company c , owner’s equity at the beginning of the period i.e. equity as of December 31, 2014 amounts to $0; owner’s investments during the year amount to $87,000; owner’s withdrawals amount to $10,000; and net loss amounts to 4,000. The missing amount is for the owner’s equity at the end of the period i.e. equity as of December 31, 2015. For Company d , owner’s equity at the beginning of the period i.e. equity as of December 31, 2014 amounts to $0; owner’s investments during the year amount to $210,000; owner’s withdrawals amount to $55,000; and owner’s equity at the end of the period i.e. equity as of December 31, 2015 amounts to 110,000. The missing amount is for the net income (or net loss) for the year. The missing amounts for Companies a through d , are calculated as follows: Formula used: State of Changes in Owner’s Equity for a specific period which includes the following items: [ O w n e r ' s E q u i t y A t T h e B e g i n n i n g o f t h e P e r i o d + O w n e r ' s I n v e s t m e n t s − O w n e r ' s W i t h d r a w a l s + N e t I n c o m e ( o r − N e t L o s s ) ] = O w n e r ' s E q u i t y A t T h e E n d o f t h e P e r i o d Calculation: For Company a , we will put the given values in the above mentioned formula to compute the missing amount of the owner’s withdrawals during the year as follows: [ $ 0 + $ 110 , 000 − O w n e r ' s W i t h d r a w a l s + $ 22 , 000 ] = $ 104 , 000 O w n e r ' s W i t h d r a w a l s = $ 110 , 000 + $ 22 , 000 − $ 104 , 000 O w n e r ' s W i t h d r a w a l s = $ 28

15th Edition

ISBN: 9781265564483

Author: Wild

Publisher: MCG

See similar textbooks

Videos

Question

Chapter 2, Problem 19E

To determine

Concept Introduction

Owner’s Equity: Owner’s Equity is the total amount of assets that are owned by the owner (or owners) of an entity, minus the total amount of liabilities.

Statement of owner’s equity (or Statement of changes in owner’s equity): Statement of owner’s equity is a financial statement that shows the events or transactions that cause the increase or decrease in owner’s equity from the beginning to the end of the period.

To Compute: The missing amount for each of the given separate companies a through d.

Expert Solution & Answer

Chapter 2 Solutions

FUNDAMENTAL ACCT PRIN TEXT+CONNECT CODE

Ch. 2 - Prob. 1DQ Ch. 2 - What is the difference between a note payable and...Ch. 2 - Prob. 3DQ Ch. 2 - Prob. 4DQ Ch. 2 - Prob. 5DQ Ch. 2 - Prob. 6DQ Ch. 2 - Prob. 7DQ Ch. 2 - Prob. 8DQ Ch. 2 - Prob. 9DQ Ch. 2 - Prob. 10DQ

Ch. 2 - Prob. 11DQ Ch. 2 - Prob. 12DQ Ch. 2 - Prob. 13DQ Ch. 2 - Prob. 14DQ Ch. 2 - Prob. 15DQ Ch. 2 - Prob. 16DQ Ch. 2 - Prob. 17DQ Ch. 2 - Prob. 18DQ Ch. 2 - Prob. 1QS Ch. 2 - Prob. 2QS Ch. 2 - Prob. 3QS Ch. 2 - Prob. 4QS Ch. 2 - Prob. 5QS Ch. 2 - Prob. 6QS Ch. 2 - Prob. 7QS Ch. 2 - Prob. 8QS Ch. 2 - Prob. 9QS Ch. 2 - Prob. 10QS Ch. 2 - Prob. 1E Ch. 2 - Prob. 2E Ch. 2 - Prob. 3E Ch. 2 - Prob. 4E Ch. 2 - Prob. 5E Ch. 2 - Prob. 6E Ch. 2 - Prob. 7E Ch. 2 - Prob. 8E Ch. 2 - Prob. 9E Ch. 2 - Prob. 10E Ch. 2 - Prob. 11E Ch. 2 - Prob. 12E Ch. 2 - Prob. 13E Ch. 2 - Prob. 14E Ch. 2 - Prob. 15E Ch. 2 - Prob. 16E Ch. 2 - Prob. 17E Ch. 2 - Prob. 18E Ch. 2 - Exercise 2-19 Analyzing changes in a company's...Ch. 2 - Prob. 20E Ch. 2 - Prob. 21E Ch. 2 - Prob. 22E Ch. 2 - Prob. 23E Ch. 2 - Prob. 1APSA Ch. 2 - Prob. 2APSA Ch. 2 - Prob. 3APSA Ch. 2 - Prob. 4APSA Ch. 2 - Prob. 5APSA Ch. 2 - Prob. 6APSA Ch. 2 - Prob. 1BPSB Ch. 2 - Prob. 2BPSB Ch. 2 - Prob. 3BPSB Ch. 2 - Prob. 4BPSB Ch. 2 - Prob. 5BPSB Ch. 2 - Prob. 6BPSB Ch. 2 - Prob. 2SP Ch. 2 - Prob. 1GLP Ch. 2 - Prob. 2GLP Ch. 2 - Prob. 3GLP Ch. 2 - Prob. 4GLP Ch. 2 - Prob. 5GLP Ch. 2 - Prob. 6GLP Ch. 2 - Prob. 7GLP Ch. 2 - Prob. 8GLP Ch. 2 - ( REPORTING IN ACTION A 1 A2...Ch. 2 - Prob. 2BTN Ch. 2 - Prob. 3BTN Ch. 2 - Prob. 4BTN Ch. 2 - Prob. 5BTN Ch. 2 - Prob. 6BTN Ch. 2 - Prob. 7BTN Ch. 2 - Prob. 8BTN Ch. 2 - Prob. 9BTN Ch. 2 - Prob. 10BTN

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Recommended textbooks for you

FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education