At January 1, 2010, LeAnna Industries reported owner's equity of $130,000. During 2010, LeAnna had a net loss of $30,000 and owner drawings of $20,000. At December 31, 2010, the amount of owner's equity is

Question

Quizplus · Accepted Answer

Beginning owner's equity = $130,000
Net loss for 2010 reduces equity = -$30,000
Owner's drawings for 2010 reduce equity = -$20,000

Therefore, ending owner's equity = Beginning equity - Net loss - Drawings
= $130,000 - $30,000 - $20,000
= $80,000

At January 1, 2010, LeAnna Industries Reported Owner's Equity of $130,000