A. Solve the missing element: (Preparation of SCE of a single proprietorship)
1. Beginning Capital
a. 100,000
b. 70,000
c. 160,000
d. 500,000
e. ?
2. Additional Investment
a. 50,000
b. 150,000
c. 40,000
d. ?
e. 76,000
3. Withdrawals
a. 14,000
b. ?
c. 20,000
d. 150,000
e. 240,000
4. Net Income(Loss)
a. 170,000
b. (40,000)
c. ?
d. 400,000
e. 500,000
5. Ending Capital
a. ?
b. 155,000
c. 210,000
d. 850,000
e. 526,000
Closing capital = Opening capital + Net profit + Additional investment - Drawings
(a) Closing capital = $100,000 + $170,000 + $50,000 - $14,000
= $306,000
(b) $155,000 = $70,000 + ($40,000) + $150,000 -Drawings
Drawings = $70,000 -$40,000 -$155,000 + $150,000
= $25,000
(c) $21,000 = $160,000 + Net profit +$40,000 -$20,000
Net Profit = $210,000 -$160,000 -$40,000 +$20,000
=$30,000
(d) $850,000 = $500,000 +$400,000 + Additional investment - $150,000
Additional Investment = $850,000 -$500,000 +$150,000 -$400,000
= $100,000
(e) $526,000 = Opening capital + $500,000 + $76,000 - $240,000
Opening Capital = $526,000 - $500,000 - $76,000 + $240,000
= $190,000
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