You are on page 1of 2

Basic Instructions for a Owners Equity Statement

Morrison Pet Supply Company Statement of Owners Equity For the Month Ended December 31, 20XX A.L. Morrison, Capital, December 1, 20XX Investments during the month Net income for the month Less: Withdrawals Increase in owners equity A.L. Morrison, Capital, December 31, 20XX $XX,XXX X,XXX XX,XXX X,XXX XX,XXX XX,XXX $XX,XXX

Systematic Directions Always start with the three-line header, which includes the name of the company, the title of the statement, and the fiscal period covered by the statement. 1. On the first line in the body of the statement in the right hand column, place the owners name followed by a comma and the word Capital then the beginning date of the statement. In the left hand column, place the capital dollar amount from the beginning of the year. This amount can be acquired from the adjusted trial balance or the ledger after end of the year adjustments are posted. 2. On the second line, place the title Investments during the month in the left hand column. Place the dollar amount in the middle column. If no investments by the owners are made during the fiscal period, simple leave this line out of the statement. 3. On the third line, place the title Net income for the period for the fiscal period. Place the dollar amount in the middle column. This amount is acquired from the income statement. 4. On the fourth line, add investments and net income for the period together to get the dollar amount. There is no title for this line. Place the total dollar amount in the center column. 5. On the fifth line, place the title Less: Withdrawals in the right hand column. Place the dollar amount in the middle column. 6. On the sixth line, place the title Increase in owners equity in the right hand column. Subtract withdrawals from the third line and place the answer in the right hand column. MJC Revised 5/2012 Page 1

Basic Instructions for a Owners Equity Statement


7. On the seventh line, place the title (Owners Name, Capital, Month-Day, and Year) in the left hand column. Now add increases in owners equity to the beginning balance for owners capital to get the dollar amount. Place the dollar amount in the right hand column. Double underline the answer. Note: Net losses are to be subtracted, as are withdrawals.

MJC Revised 5/2012

Page 2