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Below Are Owners' Equity Accounts for Three Different Forms of Business

Question 106

Essay

Below are owners' equity accounts for three different forms of business entities.Identify which form of business entity each set of owners' equity accounts represents and explain how you arrived at your decision.
Business entity #1
Sara Kromar, capital $100,000Daniel Tondra, capita 15,000Ant Pamer, capital 90,000 Kathy Frenan, capital110,000 Total capital$315,000\begin{array} { l l } \text {Sara Kromar, capital } & \$ 100,000\\\text {Daniel Tondra, capita } & 15,000\\\text {Ant Pamer, capital } & 90,000\\\text { Kathy Frenan, capital}&110,000\\\text { Total capital}&\$ 315,000\end{array}
Business entity #2

Stockholders’ equity:Paid-in capital: Capital stock, 25,000 shares issued at par value of $5 per share $125,000 Paid-in capital in excess of par value 250,000 Total paid-in capital $375,000 \begin{array}{lr}\text {Stockholders' equity:}\\\text {Paid-in capital:}\\\text { Capital stock, } 25,000 \text { shares issued at par value of } \$ 5 \text { per share } & \$ 125,000 \\ \text { Paid-in capital in excess of par value } & \underline{250,000} \\ \text { Total paid-in capital } & \underline{\underline{\$ 375,000}}\end{array}
Business entity #3
Mary Housel, capital \quad \quad \quad $100,000 \$ 100,000

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Business entity #1 is a partnership sinc...

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