FABM 2 Case-based ExperienceSCE pa more!• Read and analyze the capital, withdrawal and incomesummary accounts for Leonila Generales Travel Agency.• Identify the balances included in computation of thechanges in owner's equity• Prepare a Statement of Changes in EquityProblem #6Preparation of the Statement of Changes in EquityThe capital, withdrawal and income summary accounts for Leonila Generales TrAgency are shown in T-account form below. The closing entries have been recordedthe year ended Dec. 31, 2016.Generales, CapitalJan. 1360,000280,000430,000Dec. 31 420,000Mar. 9Dec. 31Generales, Withdrawals420,000Mar. 31June 3090,00070,00090,000Dec. 31Sept. 30Dec. 31170,000Income SummaryDec. 31850,000430,000Dec. 311,280,000Dec. 31Required:Prepare a statement of changes in equity.

The statement of equity represents the capital or income that belongs to the shareholders only.

Answered: Prepare a Statement of Changes in…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter15: Financial Statements And Year-end Accounting For A Merchandising Business

Section: Chapter Questions

Problem 3CE

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QA)Choose the correct answer: 2. Which is a shareholders' equity account in the statement of financial position? Select one: a. Dividends payable. b. Marketable securities c. Issued capital. d. Accumulated depreciation. 3. Making insurance payments in advance is an example of: Select one: A. An accrued receivable transaction. B. An accrued liability transaction. C. An unearned revenue transaction. D. A prepaid expense transaction 4. Cost of goods sold is: Select one: a. An asset account. b. A permanent equity account. c. An expense account. d. A revenue account.
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