Question

Beaty ray started an accounting service on June 1, 20–, by investing $20,000. Her net income for the month was $10,000, and she withdrew $8,000. Prepare a statement of owner’s equity for the month of June. If an amount is zero, enter “0”

Answer 1

To prepare a statement of owner's equity for the month of June, we need to calculate the initial investment, add the net income, and subtract any withdrawals made by the owner. The ending owner's capital for the month of June is $22,000.

Step-by-step explanation:

To prepare a statement of owner's equity for the month of June, we need to calculate the owner's capital at the beginning of the month, add the net income, and subtract any withdrawals made by the owner. Here's the step-by-step process:

1. Start with the owner's capital at the beginning of the month, which is the initial investment of $20,000.
2. Add the net income for the month, which is $10,000.
3. Subtract any withdrawals made by the owner, which is $8,000.
4. The resulting amount is the ending owner's capital for the month of June.

Using this information, we can prepare a statement of owner's equity:

Owner's Capital+$20,000Net Income+ $10,000Withdrawals- $8,000Ending Owner's Capital= $22,000