EX 4-9 Statement of owner’s equity; net loss

Selected accounts from the ledger of Balboa Sports for the current fiscal year ended June 30, 2012, are as follows:
         Erica Kilty, Capital                                   Erica Kilty, Drawing
  June 30 42,000  July 1 (2011) 398,500      Sept. 30 2,500 June 30 10,000
          30 10,000                                        Dec. 31 2,500
                                                                 May 31 2,500
                                                                 June 30 2,500
             Income Summary
June 30 402,000 June 30 360,000
                                  30 42,000

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

Answer:

BALBOA SPORTS 

Statement of Owner’s Equity 

For the Year Ended June 30, 2012 

Erica Kilty, capital, July 1, 2011 ........................................ $398,500
Net loss for year ........................................ $42,000
Plus withdrawals.......................................... 10,000
Decrease in owner’s equity............................................... 52,000
Erica Kilty, capital, June 30, 2012................................... $346,500