5. PR.02.11A.ALGO

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Statement Of Owner's Equity

Jay Pembroke started a business. During the first month (April 20--), the following transactions occurred.

Invested cash in business, $19,000.

Bought office supplies for $4,900: $2,200 in cash and $2,700 on account.

Paid one-year insurance premium, $1,000.

Earned revenues totaling $3,600: $1,500 in cash and $2,100 on account.

Paid cash on account to the company that supplied the office supplies in transaction (b), $2,350.

Paid office rent for the month, $700.

Withdrew cash for personal use, $150.

The effect of each transaction is shown in the individual accounts of the expanded accounting equation.

Assets								=	Liabilities	+	Owner's Equity
(Items Owned)									(Amts. Owed)		(Owner's Investment)				(Earnings)
	Cash	+	Accounts Receivable	+	Office Supplies	+	Prepaid Insurance	=	Accounts Payable	+	J. Pembroke, Capital	-	J. Pembroke, Drawing	+	Revenues	-	Expenses		Description
a.	19,000										19,000
b.	(2,200)				4,900				2,700
c.	(1,000)						1,000
d.	1,500		2,100												3,600				Service fees
e.	(2,350)								(2,350)
f.	(700)																700		Rent expense
g.	(150)												150
Bal.	14,100	+	2,100	+	4,900	+	1,000	=	350	+	19,000	-	150	+	3,600	-	700

The income statement for Jay Pembroke for the month ended April 30, 20-- is shown.

Jay Pembroke Income Statement For Month Ended April 30, 20--
Revenues:
Service fees	$3,600
Expenses:
Rent expense	700
Net income	$2,900

Required:

Use the information to prepare a statement of owners equity for Jay Pembroke for the month of April 20--. If an amount is zero, enter "0".

Jay Pembroke Statement of Owner's Equity For Month Ended April 30, 20--

CashJay Pembroke, capital, April 1, 20--Jay Pembroke, capital, April 30, 20--Less withdrawals for AprilNet income for April		$- Select -
CashIncrease in capitalInvestment during AprilJay Pembroke, capital, April 30, 20--Less withdrawals for April		- Select -
Total investment		$fill in the blank 5
Increase in capitalInvestment during AprilJay Pembroke, capital, April 1, 20--Jay Pembroke, capital, April 30, 20--Net income for April	$- Select -
Less increase in capitalLess investment during AprilLess Jay Pembroke, capital, April 1, 20--Less Jay Pembroke, capital, April 30, 20--Less withdrawals for April	- Select -
Decrease in capitalIncrease in capital		- Select -
Increase in capitalInvestment during AprilJay Pembroke, capital, April 1, 20--Jay Pembroke, capital, April 30, 20--Less withdrawals for AprilNet income for April		$- Select -