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Homework answers / question archive / On January 1, 2012, Lee Inc
On January 1, 2012, Lee Inc. reported owner's equity of $130,000. During the year they experienced a net loss of $30,000 and owner's drawings of $20,000.
On December 31, 2012, the amount in owner's equity is:
a. $130,000
b. $140,000
c. $180,000
d. $80,000
Option d. is correct
Data Provided:
Owner's equity can be calculated as
Owner's equity = Owner's equity at begining - Net loss - Withdrawls
Owner's equity = $130,000 - $30,000 - $20,000
Owner's equity = $80,000
On December 31, 2012, the amount in owner's equity is $80,000.
