Question

The revenues and expenses of Ousel Travel Service for the year ended November 30, 2016, follow.

Accounts (revenue and expense items)
Fees earned	$746,500
Office expense	295,700
Miscellaneous expense	10,400
Wages expense	450,200

Prepare a statement of owner’s equity for the year ended November 30, 2016. Shane Ousel, the owner, invested an additional $37,000 in the business during the year and withdrew cash of $19,000 for personal use. Shane Ousel, capital as of December 1, 2015, was $380,000. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. If a net loss is incurred or there is a decrease in owner’s equity, enter that amount as a negative number using a minus sign.

Answer 1

working note:

first we shall prepare an income statement ot know the net income of Shane ousel.

Ousel Travel service.

Income statement

Year ended November 30, 2016.

Revenue:
Service revenue		$746,500
Expenses:
office expense	$295,700
miscelleneous expense	10,400
wages expense	450,200	- 756,300
Net income		- $9,800

Ousel Travel service

Statement of owner's equity

Year ended November 30,2016.

Shane ousel capital 12/1/15		380,000
additional investment	37,000
net loss	- 9,800
	27,200
drawings	- 19,000
Increase in owners equity		8,200
Shane ousel capital 11/30,/16		388,200