A statement of owner’s equity is based on the balance sheet column of the worksheet. The capital account in the ledger should be checked to see whether any additional investments occurred. You add the net income from the income statement and deduct the withdrawals to calculate the ending figure of capital. This ending capital amount is carried over to the balance sheet. A classified balance sheet classifies assets as current assets or plant and equipment and groups liabilities as current or long-term liabilities.
Download and complete the WK4 Objectives 1-3 Spreadsheet (Links to an external site.).
Do Exercise 12A-4: complete the Statement of Owner’s Equity only!
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