Determine financial statement amounts and prepare owner's equity statement.
1 answer:
Answer and Explanation:
a. The first part is presented in the attached spreadsheet
b. The presentation is shown below:
Owner’s equity statement for Alpha Company:-
Particulars Amount($)
Opening balance 39,000
Additional investment 9,000
Income from operation 17,000
Available total equity 65,000
Less - Drawings -15,000
Closing balance 50,000
c) For preparing the financial statements, the first part is to pass journal entries, than positing into ledger after that the income statement is made and then the stockholder equity and balance sheet are made
As the income statement records all revenues and expenses for the company . The same net profit or net loss is shown in the statement of stockholder equity and the closing balances of the retained earning and the common stock are recognized in the balance sheet along with the assets.
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