Marcie Davies owns and operates Gemini Advertising Services. On January 1, 2018, Marcie Davies, Capital had a balance of $618,500. During the year, Marcie invested an additional $40,000 and withdrew $15,000. For the year ended December 31, 2018, Gemini Advertising Services reported a net income of $92,330. Prepare a statement of owner’s equity for the year ended December 31, 2018.
Answer:
GEMINI ADVERTISING SERVICES
Statement of Owner’s Equity
For the Year Ended December 31, 2018
Marcie Davies, capital, January 1, 2018$618,500
Additional investment during 2018$ 40,000
Net income92,330
Withdrawals(15,000)
Increase in owner’s equity117,330
Marcie Davies, capital, December 31, 2018$735,830
