Using the income statement for Sentinel Travel Service shown in Practice Exercise 1-4B, prepare a statement of owner’s equity for the year ended August 31, 2019. Barb Schroeder, the owner, invested an additional $36,000 in the business during the year and withdrew cash of $18,000 for personal use. Barb Schroeder, capital as of September 1, 2018, was $380,000.
Answer:
SENTINEL TRAVEL SERVICE
Statement of Owner’s Equity
Barb Schroeder, capital, September 1, 2018$380,000 Additional investment by owner during year $ 36,000 Net loss for the year(7,000) Withdrawals(18,000) Increase in owner’s equity11,000 Barb Schroeder, capital, August 31, 2019$391,000