Question

Owner's Equity Statement

For Year Ended Dec 31

Beginning capital, Jan 1: $42,700
Additional investments: $23,400
Net income: $16,500
Less drawing: _______
Increase in equity: $28,900


What is the value for Less drawing?

a) $28,900
b) $16,500
c) $23,400
d) $42,700

Answer 1

The value for Less drawing in the Owner's Equity Statement for the year ended Dec 31 can be determined by rearranging the equation and performing the calculations.

Step-by-step explanation:

The value for Less drawing in the owner's equity statement is $16,500. This can be determined by adding the beginning capital, additional investments, and net income, and then subtracting the increase in equity. The calculation would look like this:

Beginning capital, Jan 1: $42,700
Additional investments: $23,400
Net income: $16,500
Less drawing: $16,500 (to be determined)
Increase in equity: $28,900

By rearranging the equation, we can find the value for Less drawing:
Beginning capital + Additional investments + Net income - Increase in equity = Less drawing
So, $42,700 + $23,400 + $16,500 - $28,900 = $16,500