The assets and liabilities of Thompson Computer Services at March 31, the end of

Question

The assets and liabilities of Thompson Computer Services at March 31, the end of the current year, and its revenue and expenses for the year are listed below. The capital of the owner was $180,000 at April 1, the beginning of the current year. Mr. Thompson invested an additional $25,000 in the business during the year. Accounts payable $ 2,000 Miscellaneous expense $ 1,030 Accounts receivable 10,340 Office expense 1,240 Cash 21,420 Supplies 1,670 Fees earned 73,450 Wages expense 23,550 Land 47,000 Drawing 16,570 Building 157,630 Prepare a statement of owner’s equity for the current year ended March 31.

Explanation / Answer

Statement of owner’s equity for the current year ended March 31.

WORKING NOTES

Income statement

Capital, April 1, the beginning 180000 Additional investment by owner during year 25000 Net Income ( Working Notes) 47630 Sub total 72630 Less withdrawals 16570 Increase in owner’s equity 56060 Thompson’s, capital March 31 236060

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