Using the income statement for Sunset Travel Service shown in Practice Exercise 1-4A, prepare a statement of owner’s equity for the current year ended April 30, 2014. Craig Daws, the owner, invested an additional $75,000 in the business during the year and withdrew cash of $66,000 for personal use. Craig Daws, capital as of May 1, 2013, was $300,000.
Answer:
SUNSET TRAVEL SERVICE
Statement of Owner’s Equity
For the Year Ended April 30, 2014
Craig Daws, capital, May 1, 2013 $300,000
Additional investment by owner during year $ 75,000
Net income for the year 491,000
$566,000
Less withdrawals 66,000
Increase in owner’s equity 500,000
Craig Daws, capital, April 30, 2014 $800,000
