Question

The owner s equity division should contain what account(s)?

a. 31 P. Woodsley Capital
b. 31 P. Woodsley Capital 32 Merchant s Bank
c. 31 Merchant s Bank 32 P. Woodsley Capital
d. 31 32

Answer 1

The owner's equity division should contain a) 31 P. Woodsley Capital.

The statement of owner's equity includes the capital and the changes that affects the capital like additional contribution, net income, withdrawals, and expenses.

Additional contribution and net income increases the value of the owner's equity.

Withdrawal and expenses decreases the value of the owner's equity.