At October 1, Russell Company reported owner's equity of $76,000. During October, no additional investments were made and the company posted a net loss of $8,000. If owner's equity at October 31 totals $64,000, what amount of owner drawings were made during the month?

Question

Quizplus · Accepted Answer

The decrease in owner's equity from $76,000 to $64,000 is $12,000. Since there was a net loss of $8,000, the remaining $4,000 decrease must be due to owner drawings.

At October 1, Russell Company Reported Owner's Equity of $76,000