Question

Statement of Changes in Owners' Equity А B С D E Equity, Jan 1 $0 $0 $0 $0 Investment by Owner 60,000 31,500 37,500 140,000 Profit (Loss) for the year 15,750 30,500 (4,500) (8,000) Owner's Withdrawal |(27,000) (20,000) (15,750) (63,000_) Equity, Dec 31 56,000 49,500 32,000 171,500 102,500 || 46,000 10,250 (19,750) 7,000

Answer 1

Ans.		A	B	C	D	E
	Equity, Jan 1	$0	$0	$0	$0	$102,500
	Investment by Owner	$60,000	$46,000	$31,500	$37,500	$140,000
	Profit (Loss) for the year	$15,750	$30,500	-$4,500	$10,250	-$8,000
	Owner's withdrawal	-$19,750	-$27,000	-$20,000	-$15,750	-$63,000
	Equity, Dec 31	$56,000	$49,500	$7,000	$32,000	$171,500
	*Working Notes :
	*Calculations for A :
	Equity, Jan 1	$0
	Add: Investment by Owner	$60,000
	Add: Profit (Loss) for the year	$15,750
	Less: Equity, Dec 31	-$56,000
	Owner's withdrawal	$19,750
	*Calculations for B :
	Equity, Dec 31	$49,500
	Add: Owner's withdrawal	$27,000
	Less: Equity, Jan 1	$0
	Less: Profit for the year	-$30,500
	Investment by Owner	$46,000
	*Calculations for C :
	Equity, Jan 1	$0
	Add: Investment by Owner	$31,500
	Less: Loss for the year	-$4,500
	Less: Owner's withdrawal	-$20,000
	Equity, Dec 31	$7,000
	*Calculations for D :
	Equity, Dec 31	$32,000
	Add: Owner's withdrawal	$15,750
	Less: Equity, Jan 1	$0
	Less: Investment by Owner	-$37,500
	Profit for the year	$10,250
	*Calculations for E :
	Equity, Dec 31	$171,500
	Add: Owner's withdrawal	$63,000
	Add: Loss for the year	$8,000
	Less: Investment by Owner	-$140,000
	Equity, Jan. 1	$102,500