. The income summary account only shows revenues and expenses and the resulting net income or net loss that is closed to the capital account .
Apex Systems Co. Statement of Owner ‘s Equity For the Year Ended December 31 , 2019 748,70
Bart Nesbit , capital , January 1 , 2019 $ ✔ Net income $ ✔ 392,00 – 39,20 Withdrawals ✔ 352,80 Increase in owner ‘s equity ✔ 1,101 ,
Bart Nesbit , capital , December 31 , 2019 $ ✔ Feedback Check My Work Debits to the capital account occur as a result of a net loss and withdrawals .
The income summary account only shows revenues and expenses and the resulting net income or net loss that is closed to the capital account .
The first item normally on the statement of owner ‘s equity is the beginning balance of the owner ‘s capital account .
This balance will be changed positively by any owner investments and net income , and negatively by any net losses and withdrawals.