Question

Accounts as shown on a Trial Balance on December 31, 2015 DB CR Accounts Payable                       &n

Accounts as shown on a Trial Balance
on December 31, 2015
DB CR
Accounts Payable                                               24,578.23
Accounts Receivable                                   32,547.99
Accumulated Depreciation     17,587.22
Cash                                                                 179,568.33
Cost of Goods Sold                                      180,235.66
Furniture, Fixtures & Equipment                     122,587.63
Gain on Asset Disposal                                  2,587.11
Interest Payable                                                      2,145.77
Inventory                                                       152,474.00
Notes Payable                                                  58,784.11
Operating Expenses 154,425.88
Owner's Capital 340,000.00
Owner's Draw     40,000.00
Sales                                                            463,657.05
Trading Securites                                                  47,500.00
909,339.49 909,339.49
On the balance sheet, what will be the value of the equity section?

Homework Answers

Answer #1

Statement of owner's equity

For the year  ended December 31,2015

Owner's capital January 1 2015

$ 3,40,000.00

Add: Net income earned

$ 1,31,582.62,

Subtotal

$ 4,71,582.62

Less: Cash withdrawals by owner

$      40,000.00

Owner's capital December 31, 2015

$ 4,31,582.62

Owner’s equity section would look like above

Income statement

Sales revenue

$ 4,63,657.05

Cost of goods sold

$ 1,80,235.66

Gross profit

$ 2,83,421.39

Operating expenses

$ 1,54,425.88

Operating profit

$ 1,28,995.51

Add: Gain on asset disposal

$        2,587.11

Net income

$ 1,31,582.62

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