Question

Statement Of Owner's Equity Jay Pembroke started a business in April. Prepare a Statement of Owner's Equity using the following balances for April transactions. Cash $12,834 Accounts Receivable 1,809 Office Supplies 4,667 Prepaid Insurance 1,327 Accounts Payable 327 Jay Pembroke, Capital 18,155 Jay Pembroke, Drawing 145 Service Fees 3,113 Rent Expense 813 You will need to calculate the net income for April.

Answer 1

Answer and Explanation:

the computation of the net income for the april month is as follows;

= Service fees - rent expense

= $3,113 - $813

= $2,300

Now the preparation of the owner equity is as follows;

Jay Pembroke, Capital $18,155

Net income $2,300

Less; Jay Pembroke, Drawing $145

Jay Pembroke, Capital ending capital $20,310

We assume that the capital is given for the beginning of the month