Question

On January 1, 2020, the owner of Joe's Tax Service, Joe Namath, had a capital balance of $12,900. Joe invested an additional $5,000 into his business during the year. His net income for 2020 was $17,000. Drawings for 2020 were $3,500.  Using the Excel template for question number 25 that you downloaded prior to starting this exam,, prepare an owner's equity statement for the year. Upload your file when you are finished.

Answer 1

	Owner's Equity Statement :
	Particulars	Amount
	Beginning capital balance	$      12,900
Add :	Owner contributions during the period	$         5,000
Add :	Income earned during the period	$      17,000
Less:	Owner draws during the period	$       -3,500
=	Ending capital balance	$      31,400