EX 4-8 Statement of owner’s equity

Well Systems Co. offers its services to residents in the Dallas area. Selected accounts from the ledger of Well Systems Co. for the current fiscal year ended October 31, 2014, are as follows:


Wendy McGee, Capital Wendy McGee, Drawing
Oct. 31 48,000 Nov. 1 (2013) 475,000 Jan. 31 12,000 Oct. 31 48,000
Oct. 31 90,000 Apr. 30 12,000
July 31 12,000
Oct. 31 12,000
Income Summary
Oct. 31 270,000 Oct. 31 360,000
31 90,000


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


Answer:

WELL SYSTEMS CO.
Statement of Owner’s Equity
For the Year Ended October 31, 2014
Wendy McGee, capital, November 1, 2013 $475,000
Net income $90,000
Less withdrawals 48,000
Increase in owner’s equity 42,000
Wendy McGee, capital, October 31, 2014 $517,000