Problem 1.Kun Company, a sole proprietorship trading business owned by Gabor Kun, has been operating successfully for years now. The capital of the owner at the start of the accounting period, January 1, 2020, amounted to P2,789,674. During the year, the owner decided to raise the capital balance by P400,000 worth of additional investment of cash. The entity enjoyed tremendous sales and reported net income in the income statement amounting to P789,674. The owner, however, withdrew P50,000 cash for a personal emergency purpose. No other equity activities have been noted during the year.Required: Prepare the entity’s Statement of Changes in Equity for the year ended December 31, 2020. Proforma SCExxx Merchandising CompanyStatement of Changes in Owner's EquityFor the year ended December 31, 2020xxx, Capital BeginningAdd: Additional InvestmentNet IncomeTotalLess: Drawingsxxx, Capital End*The ending capital is the owner's equity in the SFP.xxx Merchandising CompanyStatement of Changes in Owner's EquityFor the year ended December 31, 2020xxx, Capital BeginningAdd: Additional InvestmentTotalLess: DrawingsXXXXFor the exclusive use of USPF SHS-ABM Grade 12, A.Y. 2022-2023. Unauthorized use, distribution, reproduction is strictly prohibited.XXXXNet Lossxxx, Capital End*The ending capital is the owner's equity in the SFP.XXXXXX(xx)XXXXXXXX(xx)XX2

Statement of Changes in Equity reconciles Equity capital at the beginning and at the end of the…

Answered: Kun Company, a sole proprietorship…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter1: Accounting And The Financial Statements

Section: Chapter Questions

Problem 48E: Exercise 1-48 Income Statement The following information is available for Wright Auto Supply at...

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Problem 1. Kun Company, a sole proprietorship trading business owned by Gabor Kun, has been operating successfully for years now. The capital of the owner at the start of the accounting period, January 1, 2020, amounted to P2,789,674. During the year, the owner decided to raise the capital balance by P400,000 worth of additional investment of cash. The entity enjoyed tremendous sales and reported net income in the income statement amounting to P789,674. The owner, however, withdrew P50,000 cash for a personal emergency purpose. No other equity activities have been noted during the year. Required: Prepare the entity’s Statement of Changes in Equity for the year ended December 31, 2020.

Proforma SCE
xxx Merchandising Company
Statement of Changes in Owner's Equity
For the year ended December 31, 2020
xxx, Capital Beginning
Add: Additional Investment
Net Income
Total
Less: Drawings
xxx, Capital End
*The ending capital is the owner's equity in the SFP.
xxx Merchandising Company
Statement of Changes in Owner's Equity
For the year ended December 31, 2020
xxx, Capital Beginning
Add: Additional Investment
Total
Less: Drawings
XX
XX
For the exclusive use of USPF SHS-ABM Grade 12, A.Y. 2022-2023. Unauthorized use, distribution, reproduction is strictly prohibited.
XX
XX
Net Loss
xxx, Capital End
*The ending capital is the owner's equity in the SFP.
XX
XX
XX
(xx)
XX
XX
XX
XX
(xx)
XX
2

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