7 At October 1 Smithson Enterprises reported owners equity o

7. At October 1, Smithson Enterprises reported owner\'s equity of $35,000. During October no additional investments were made and the company earned net income of $4.000. If owner\'s equity at October 31 totals $32,000, what amount of owner d during the month? A) S0 rawings was m B) $1.000

Solution

Amount of owner drawings were made during the month:

= $35,000 + $4,000 - $32,000

= $7,000