Hannah Roberts owns and operates Hannah's Pool Service Company. On January 1, Hannah Roberts, Capital had a balance of $309,170. During the year, Hannah invested an additional $22,040 and withdrew $39,010. For the year ended December 31, Hannah's Pool Service Company reported a net income of $55,080.

Prepare a statement of owner's equity for the year ended December 31. Hannah's Pool Service Company Statement of Owner's Equity For the Year Ended December 31.

Hannah's Pool Service Company

Statement of owner equity for the year ended December 31

Particulars Amount

Capital (January 1) $309,170

Investment during the year $22,040

Net Income $55,080

Withdrawals during the year (-$39,010)

Increase in the owner equity $38,110

Capital (December 31) $347.280

Workings

a. Increase in the owner equity = Investment during the year + Net income - withdrawal during the year

=$22040+$55080 - $39010

=$38110

b. Capital (December 31) = Capital on January 1 + Increase in owner equity

=$309170 + $38110

=$347280