PROPRIETORSHIP EQUITY. Rich Nardone sells a line of pumps on consignment for a large manufacturer. Rich has organized his business as a proprietorship. At the beginning of 19x4 Rich’s equity account had a $24,200 balance. During 19x4, Rich invested $11,500 additional capital from his savings and withdrew $34,200 for living expenses. The proprietorship net income for 19x4 was $39,830.

REQUIRED:

1. Prepare the journal entries to record the proprietorship equity transactions described above.

2. Prepare a statement of changes in proprietorship equity for 19x4.