Category: Business and Money > Accounting
Asked by: ydorb-ga
List Price: $5.00
09 Jul 2006 10:37 PDT
Expires: 10 Jul 2006 18:16 PDT
Question ID: 744695
How can I calculate the Total Owner's Equity as of 12/31/05 if: - Company begins business on 1/1/05 - Person A contributes $100,000 in equipment and cash - Peson B earns $200,000 of revenue and incurs $100,000 of expenses, but no liabilities.
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Re: Owner's Equity
From: borisshah-ga on 09 Jul 2006 23:02 PDT
OK but doesn't Person B contribute anything at the starting of the year/business? I mean is Person A just a silent partner and Pesron B contributes through his income??? Person A has owner's equity of $100,000 for sure through out as there is no chnage or variation of his part. Person B however, seems to be contributing no eqity (shares, equipment, cash, property, vehicles etc) at the start. You cannot count his income as his equity.
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