A sole proprietorship was started on January 1, 2014, when it received $30,000 cash from Alex Ard, the owner. During 2014, the company earned $50,000 in cash revenues and paid $22,300 in cash expenses. Ard withdrew $10,000 cash from the business during 2014.© BrainMass Inc. brainmass.com October 2, 2020, 5:38 am ad1c9bdddf
Since this is a sole proprietorship, a capital statement has been prepared, not a statement of changes in equity, which is for corporations.
See attached file for complete workings for the solution.
Ard Sole Proprietorship
For the Year Ended December 31, 2014
Description Amount ($)
This solution contains all financial statements (income statement, capital statement, balance sheet, and statement of cash flows) for the accounting effects of a sole proprietorship in a pdf file. An Excel worksheet showing all computations for the statements is also provided.