Fresh features from the #1 AI-enhanced learning platform.Try it free
Fresh features from the #1 AI-enhanced learning platformCrush your year with the magic of personalized studying.Try it free
Question

# The first item appearing on the statement of owner's equity isa. net income b. the ending balance of owner's equity c. owner withdrawals d. the beginning balance of owner's equity

Solution

Verified
Answered 10 months ago
Answered 10 months ago
Step 1
1 of 2

The first item appearing on the statement of owner's equity is the beginning balance of owner's equity.

See the following sample of an owner's equity statement to understand better.

$\begin {array}{c} \textbf{M Corporation}\\ \textbf{Statement of Changes in Owner's Equity}\\ \textbf{December xx, 20xx}\\ \end{array}$

$\begin {array}{lrr} \text{Owner's equity, Beg.Bal}&\~~000\\ \hspace{20pt}\text{Add: Retained Earnings}&\text{\hspace{5pt}000}\\ \hspace{20pt}\text{ Common Stock}&\text{\hspace{5pt}000}\\ \hspace{20pt}\text{Net Income}&\underline{\hspace{5pt}000}\\ \hspace{30pt}\text{Total}&&\~~000\\ \text{Deduct:}\\ \hspace{20pt} \text{Dividends}&&\underline{\hspace{5pt}000}\\ \text{Owner's Equity, End. Balance }&&\underline{\underline{\\hspace{5pt}000}}\\ \end{array}$

Therefore, the correct option is D.

## Recommended textbook solutions

#### Financial Accounting

4th EditionISBN: 9781259730948Don Herrmann, J. David Spiceland, Wayne Thomas
1,097 solutions

#### Fundamentals of Financial Management

14th EditionISBN: 9781285867977 (1 more)Eugene F. Brigham, Joel F Houston
845 solutions

#### Century 21 Accounting: General Journal

11th EditionISBN: 9781337623124Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman
1,012 solutions

#### Fundamentals of Financial Management, Concise Edition

10th EditionISBN: 9781337902571 (2 more)Eugene F. Brigham, Joel Houston
777 solutions