Question

instructions
statement of owner’s equity
up - in - the - air travel service
statement of owner’s equity
for the year ended april 30, 20y7
1 jerome foley, capital, may 1, 20y6 \t\t$876,000.00
2 additional investment \t$520,000.00\t
3 net income \t391,000.00\t
4 withdrawls \t34,000.00\t
5 jerome foley, capital april 30, 20y7 \t\t1,285,000.00
6 \t\t

Explanation:

Step1: Start with beginning capital

Beginning Capital = $\$876,000.00$

Step2: Add additional investment

$\$876,000.00 + \$520,000.00 = \$1,396,000.00$

Step3: Add net income

$\$1,396,000.00 + \$391,000.00 = \$1,787,000.00$

Step4: Subtract withdrawals

$\$1,787,000.00 - \$34,000.00 = \$1,753,000.00$

Step5: Verify given ending capital discrepancy

The calculated ending capital ($\$1,753,000.00$) does not match the provided $\$1,285,000.00$. The correct calculation follows the owner's equity formula:
$$\text{Ending Capital} = \text{Beginning Capital} + \text{Additional Investment} + \text{Net Income} - \text{Withdrawals}$$

Answer:

The correct ending capital for Jerome Foley, April 30, 20Y7 is $\$1,753,000.00$ (the provided $\$1,285,000.00$ is inconsistent with the given components of owner's equity).