Question

Required information

As of December 31, 2019, Armani Company’s financial records show the following items and amounts.

Cash		$	10,100
Accounts receivable			9,100
Supplies			6,100
Equipment			5,100
Accounts payable			11,200
A. Armani, Capital, Dec. 31, 2018			16,100
A. Armani, Capital, Dec. 31, 2019			19,200
A. Armani, Withdrawals			13,100
Consulting revenue			33,200
Rental revenue			22,200
Salaries expense			20,100
Rent expense			12,100
Selling and administrative expenses			8,100

Required:

Prepare a year-end statement of owner’s equity for Armani Company. Note: The owner invested a total of $1,100 cash during the year.

Answer 1

Armani Company
Statement of Owner’s Equity
For The Year Ended December 31, 2019
	$
A. Armani, Capital, December 31, 2018	16,100.00
Add: Owner's Investment	1,100.00
Add: Net income	15,100.00
	32,300.00
Less: Withdrawals during the year	(13,100.00)
A. Armani, Capital, December 31, 2019	19,200.00
Explanation
Armani Company
Income Statement
For The Year Ended December 31, 2019
	$	$
Revenues:
Consulting revenue	33,200.00
Rental revenue	22,200.00
Total Revenues		55,400.00
Expenses:
Salaries expense	20,100.00
Rent expense	12,100.00
Selling and administrative expenses	8,100.00
Total expenses		40,300.00
Net income		15,100.00