On January 2, Daniel Harrison contributed $20,000 to start his business. At the end of the year,the business had generated $30,000 in sales revenues, incurred $18,000 in operating expenses, anddistributed $5,000 for Daniel to use to pay some personal expenses. Prepare ( a ) a statement ofowner’s equity, assuming this is a sole proprietorship; ( b ) the owner’s equity section of the balancesheet, assuming this is a sole proprietorship; and ( c ) the stockholder’s equity section of the balancesheet, assuming this is a corporation with no-par value stock.

On January 2, Daniel Harrison contributed $20,000 to start his business. At the end of the year,the business had generated $30,000 in sales revenues, incurred $18,000 in operating expenses, anddistributed $5,000 for Daniel to use to pay some personal expenses. Prepare ( a ) a statement ofowner’s equity, assuming this is a sole proprietorship; ( b ) the owner’s equity section of the balancesheet, assuming this is a sole proprietorship; and ( c ) the stockholder’s equity section of the balancesheet, assuming this is a corporation with no-par value stock.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter13: Choice Of Business Entity—general Tax And Nontax Factors/formation

Section: Chapter Questions

Problem 46P

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