Presented Below Is Information Related to the Sole Proprietorship of Bill

question 105

Essay

Presented below is information related to the sole proprietorship of Bill Gaits consultant. $\begin{array}{lr}\text { Service revenue-2016 } & \$ 320,000 \\\text { Total expenses-2016 } & 235,000 \\\text { Assets, January 1, 2016 } & 83,000 \\\text { Liabilities, January 1, 2016 } & 64,000\\\text { Assets, December 31, 2016 } & 158,000 \\\text { Liabilities, December 31, 2016 } & 90,000 \\\text { Drawings-2016 } & ?\end{array}$ Instructions
Prepare the 2016 owner's equity statement for Bill Gaits' consulting company.

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Definitions:

Corporation by Estoppel

Corporation by estoppel is a legal doctrine preventing an individual from denying a group's status as a corporation if they have treated it as such in their dealings.

Defective Corporation

A company that has failed to comply with certain legal formalities required for its establishment, potentially affecting its legal standing.

Foreign Corporation

A corporation in a state in which it conducts business but is not incorporated.

S Corporation

A type of corporation in the United States that meets specific Internal Revenue Code requirements and is taxed differently, passing income directly to shareholders.