EX 4-8 Statement of owner’s equity

Fouts Systems Co. offers its services to residents in the Chicago area. Selected accounts from the
ledger of Fouts Systems Co. for the current fiscal year ended October 31, 2012, are as follows:

              Lisa DuBois, Capital                                Lisa DuBois, Drawing
    Oct. 31 20,000  Nov. 1 (2011) 550,000           Jan. 31 5,000 Oct. 31 20,000
                            Oct. 31 105,000                    Apr. 30 5,000
                                                                          July 31 5,000
                                                                        Oct. 31 5,000
            Income Summary
Oct. 31 375,000 Oct. 31 480,000
        31 105,000

Prepare a statement of owner’s equity for the year.

Answer:

FOUTS SYSTEMS CO. 

Statement of Owner’s Equity 

For the Year Ended October 31, 2012 

Lisa DuBois, capital, November 1, 2011........................... $550,000
Net income for year...................................$105,000
Less withdrawals ........................................20,000
Increase in owner’s equity ........................................... 85,000
Lisa DuBois, capital, October 31, 2012............................. $635,000