EX 4-8 Statement of owner’s equity

Apex Systems Co. offers its services to residents in the Seattle area. Selected accounts from the ledger of Apex Systems Co. for the fiscal year ended December 31, 2019, are as follows:


Bart Nesbit, CapitalBart Nesbit, Drawing
Dec. 31 90,000 Jan. 1 (2019) 1,375,000 Mar. 31 22,500 Dec. 31 90,000
Dec. 31 355,000 June 30 22,500
Sept. 30 22,500
Dec. 31 22,500

Prepare a statement of owner’s equity for the year.


Answers:

Bart Nesbit, capital, January 1, 2019$1,375,000
Net income$355,000
Withdrawals(90,000)
Increase in owner’s equity265,000
Bart Nesbit, capital, December 31, 2019$1,640,000