SLICE NAME

Accounting Cycle

TOPIC NAME

Creating a basic equity statement

On December 31, Ramirez Co. had the following list of accounts and their respective annual balances.

Accounts Payable $26,600 Prepaid Rent $14,400

Accounts Receivable $66,900 Rent Expense $8,600

Beginning Capital $86,500 Service Revenue $56,700

Cash $51,500 Supplies $10,900

Deferred Revenue $13,200 Supplies Expense $7,200

Drawing $14,000 Utilities Expense $6,200

Legal Expense $3,300

Required:

Complete thestatement of owner's equitybelow.

Hint: First compute net income.

Ramirez Company

Statement of Owner's Equity

For Year Ended December 31

Beginning Capital $86,500

$_________________

Change in Equity

__________________

Ending Capital $86,500

____________

_____________