Question 4.2: Statement of Owner’s Equity Zack Gaddis owns and operates Ga......
Statement of Owner’s Equity
Zack Gaddis owns and operates Gaddis Employment Services. On January 1, 2011, Zack Gaddis, Capital had a balance of $186,000. During the year, Zack invested an additional $40,000 and withdrew $25,000. For the year ended December 31, 2011, Gaddis Employment Services reported a net income of $18,750. Prepare a statement of owner’s equity for the year ended December 31, 2011.
Gaddis Employment Services
Statement of Owner’s Equity
For the Year Ended December 31, 2011
Zack Gaddis, capital, January 1, 2011 …………………………….. $186,000
Additional investment during 2011 ……………………………….. \underline{40,000}
Total ………………………………………………………………………………………… \underline{\$ 226,000}
Withdrawals …………………………………………………………………………. $ 25,000
Less net income …………………………………………………………………… \underline{18,750}
Decrease in owner’s equity ………………………………………………. \underline{6,250}
Zack Gaddis, capital, December 31, 2011 ………………………… \underline{\$ 219,750}