Reference no: EM131809393

Exercise - Preparing a statement of owner's equity

The worksheet of Alec's Office Supplies contains the following revenue, cost, and expense accounts. The merchandise inventory amounted to $58,775 on January 1, 2013, and $51,725 on December 31, 2013. The expense accounts numbered 611 through 617 represent selling expenses, and those numbered 631 through 646 represent general and administrative expenses.

Accounts

401 Sales $ 245,600 Cr. 

451 Sales Returns and Allowances 4,250 Dr. 

491 Miscellaneous Income 300 Cr. 

501 Purchases 102,600 Dr. 

502 Freight In 1,875 Dr. 

503 Purchases Returns and Allowances 3,500 Cr. 

504 Purchases Discounts 1,700 Cr. 

611 Salaries Expense-Sales 44,300 Dr. 

614 Store Supplies Expense 2,210 Dr. 

617 Depreciation Expense-Store Equipment 1,410 Dr. 

631 Rent Expense 12,500 Dr. 

634 Utilities Expense 2,900 Dr. 

637 Salaries Expense-Office 20,100 Dr. 

640 Payroll Taxes Expense 5,000 Dr. 

643 Depreciation Expense-Office Equipment 470 Dr. 

646 Uncollectible Accounts Expense 620 Dr. 

691 Interest Expense 540 Dr. 

The worksheet of Alec's Office Supplies contains the following owner's equity accounts. No additional investments were made during the period.

Accounts

301 Alec Patel, Capital $ 62,760 Cr.

302 Alec Patel, Drawing 40,200 Dr. 

Prepare a statement of owner's equity for the year ended December 31, 2011.