Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

Exercise 34

Ben Washington, sole owner of Washington Mattress Company, has an ownership interest in the company of $50,000 at January 1, 2015.uring that year, he invests an additional $20,000 in the company and the company reports a net income of $25,000.etermine the balance of owner's equity that will appear in the statement of financial position at the end of the year, and explain how the amount of net income articulates with that figure in the balance sheet.