Chapter 1
Recognition and Measurement
27
b) Arrange the items in the liquidity order that is commonly presented on the balance sheet
under ASPE.
AP-8B (
4
)
On January 1, 2016, Jim Varenik, a sole proprietor, had opening owner’s capital of $350,000,
invested $45,000 into the business, generated a net income of $70,000 and withdrew
$130,000 from the proprietorship’s bank account for personal needs. Prepare the statement of
owner’s in equity for Jim’s December 31, 2016 year-end.
