Francis Matthews owns and operates Daffodil Advertising Services. On January 1, 2013, Francis Matthews

Francis Matthews owns and operates Daffodil Advertising Services. On January 1, 2013, Francis Matthews, Capital had a balance of $475,000. During the year, Francis invested an additional $50,000 and withdrew $30,000. For the year ended December 31, 2013, Daffodil Advertising Services reported a net income of $139,500. Prepare a statement of owner’s equity for the year ended December 31, 2013.


Answer:

Daffodil Advertising Services
Statement of Owner’s Equity
For the Year Ended December 31, 2013
Francis Matthews, capital, January 1, 2013 $475,000
Additional investment during 2013 $ 50,000
Net income 139,500
$189,500
Less withdrawals 30,000
Increase in owner’s equity 159,500
Francis Matthews, capital, December 31, 2013 $634,500