Statement of Owner’s Equity Using the income statement for Chickadee Travel Service shown in Example Exercise 1-4, prepare a statement of owner’s equity for the year ended April 30, 2012. Adam Cellini, the owner, invested an additional $50,000 in the business and withdrew cash of $30,000 for

Question

Statement of Owner’s Equity

Using the income statement for Chickadee Travel Service shown in Example Exercise 1-4, prepare a statement of owner’s equity for the year ended April 30, 2012. Adam Cellini, the owner, invested an additional $ 50,000 in the business and withdrew cash of $ 30,000 for personal use during the year. The capital of the owner, Adam Cellini, was $ 80,000 on May 1, 2011, the beginning of the current year.

Accepted Answer

Chickadee Travel Service
Statement of Owner’s Equity
For the Year Ended April 30, 2012

Adam Cellini, capital, May 1, 2011 ..................................................... $80,000
Additional investment by owner during year ......................... $50,000
Net income for the year ....................................................................... [latex]\underline{55,550}[/latex] $105,550

Less withdrawals ..................................................................................... [latex]\underline{30,000}[/latex]
Increase in owner’s equity ................................................................ [latex]\underline{75,550}[/latex]
Adam Cellini, capital, April 30, 2012 ............................................... [latex]\underline{\$155,550}[/latex]

Question 1.5: Statement of Owner’s Equity Using the income statement for C......

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