Answer:
Zenith Travel Service
Statement of Owner's Equity for the year ended August 31, 20Y4:
Capital as of September 1, 20Y3 = $456,000
Additional investment 43,200
Retained Earnings (8,400)
Drawings (21,600)
Capital as of August 31, 20Y4 $469,200
Explanation:
a) Data and Calculations:
Additional investment = $43,200
Personal withdrawal = $21,600
Income Statement for the year ended August 31, 20Y4:
Fees earned $899,600
Office expense 353,800
Miscellaneous expense 14,400
Wages expense 539,800 908,000
Net income/Retained earnings ($8,400)
b) Zenith's statement of owner's equity is a financial statement that reports the changes in the equity section of Zenith's balance sheet during the year ended August 31, 20Y4. In other words, it reports the events that increased or decreased Megan Cox's equity over the course of the year from September 1, 20Y3 to August 31, 20Y4.
