Question

From the partial work sheet, prepare a statement of owner's equity, assuming no additional investment was made by the owner.

Answer 1

To prepare a statement of owner's equity, calculate the owner's equity for each individual and add them up. Freda's equity is $250,000 and Frank's equity is $100,000. The total owner's equity is $350,000.

Step-by-step explanation:

To prepare a statement of owner's equity, we need to calculate the owner's equity for each individual and then add them up. From the given information:

- Freda's equity is $250,000 as she owes nothing to the bank,

- Frank's equity is $100,000 as he owes $60,000 to the bank and has paid off $20,000 of the loan.

Therefore, the total owner's equity would be $250,000 + $100,000 = $350,000.