Case A Sole

Proprietorship

Case B

Partnership

Show how the statement of owner's equity would appear at December $31$ for Case A: Sole Proprietorship. Assume for each of the following independent cases that the annual accounting period ends on December $31.$ Revenues for the year were $$158,000.$ Expenses for the year were $$186,000.$

Case A: Assume that RiseUp Company is a sole proprietorship owned by Mrs$.$ Rise. Prior to the closing entries, the capital account reflects a balance of $$69,000$ and the drawing account shows a balance of $$6,000.$

Case B: Assume that RiseUp Company is a partnership owned by Mrs$.$ Rise and Mr$.$ Up$.$ Prior to the closing entries, the owners' equity accounts reflect the following balances: Rise, Capital, $$55,000$; Up$,$ Capital, $$55,000$; Rise, Drawings, $$12,000$; and Up$,$ Drawings, $$14,000.$ Profits and losses are divided equally.

Case C: Assume that RiseUp Company is a corporation.

$2.$ Show how the statement of owner's equity would appear at December $31$ for Case A and Case B$.$

Case A: Sole Proprietorship

Case B: Partnership