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.
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.
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter4: Accounting For Retail Operations
Section: Chapter Questions
Problem 4.2MBA: Sales transactions Using transactions listed in P4-2, indicate the effects of each transaction on...
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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.
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