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Preparing a Statement of Changes in Owners Equity Instructions Use the balance sheet and
Chapter 9, Problem 9-8(choose chapter or problem)
Preparing a Statement of Changes in Owners’ Equity
Instructions Use the balance sheet and income statement shown to prepare a statement of changes in owners’ equity. (The owner made an additional investment of $4,000 and withdrew $1,500 during the period.)
Questions & Answers
QUESTION:
Preparing a Statement of Changes in Owners’ Equity
Instructions Use the balance sheet and income statement shown to prepare a statement of changes in owners’ equity. (The owner made an additional investment of $4,000 and withdrew $1,500 during the period.)
ANSWER:
Step 1 of 2
Statement of changes in owner’s equity is a financial statement which is prepared to determine the owner’s equity at the end of the accounting period. This statement includes the beginning balance of the equity, additional investments made during the year, net income (loss) during the period, and the withdrawals made by the owner.