Final answer:
Without details on Jerome Foley's financial activities, such as capital contributions or withdrawals and profit or loss, it is not possible to prepare a complete statement of owners' equity. However, the concept involves starting with the equity balance from the beginning of the year, adjusting for profits or losses, and factoring in any owner investments or withdrawals to arrive at the end-of-year equity.
Step-by-step explanation:
To prepare a statement of owners' equity for the year ended April 30, 20y7 for Jerome Foley, we need to consider any changes in the equity section of the balance sheet during the year such as additional investments by the owner, withdrawals by the owner, and profit or loss incurred by the business.
However, the provided information lacks details regarding Jerome Foley's specific financial activities during the year, such as his capital contributions, withdrawals, and the income statement results (profits or loss). Therefore, it is impossible to create a comprehensive statement. Still, we can discuss the concept.
Typically, the statement of owners' equity begins with the equity balance at the start of the year, adds profits or subtracts losses, includes any additional owner investments, and subtracts any owner withdrawals or dividends to arrive at the equity balance at the end of the year.
For example, Frank has a house with a value of $160,000, and he owes $60,000 to the bank. Hence, his equity is $100,000. Similarly, Freda's house, worth $250,000 and fully paid off, represents an equity of $250,000. These examples show how assets and liabilities affect an individual's equity, which is analogous to how business assets and liabilities affect business equity.
Since we do not have the beginning equity, contributions, withdrawals, and profits or losses for Jerome Foley's business, we cannot provide a numerical example. We know only the initial assets and liabilities, i.e., Assets of 130 (reserves of 30, bonds of 50, and loans of 50) and Liabilities of 300 (deposits of 300), and the equity of 30.