Answer to Question #249650 in Accounting for nicole

Question

STATEMENT OF CHANGES IN EQUITY

The Retrieval Company has the following changes in equity items in year-end 2020.

prepare a Statement of Changes in Owners Equity

1. The Retrieval Company has the following changes in equity items in year-end 2020.  
2. Prepare a statement of changes in Owner's Equity. 

Balance on January 1, 2020= ₱ 550,000

March 31: The entity earned a total of ₱ 250,000 for its first quarter of operations

June 30: The owner withdraws money worth ₱ 300,000

July 28: Ms. Charlott, the owner, invests a total of ₱ 920,000 worth of equipment in the entity.

September 22: The entity earned a total of ₱ 450,000

December 31: Total expenses paid at year-end amounts to ₱ 380,000

The owner withdraws 500,000 from the business

Balance on December 31, 2020= ?

Answer 1

Balance on January 1, 2020        550,000

Add Investments         920,000

Add Net Income         320,000

Less withdrawals       (800,000)

Closing balance         990,000

Net Income = 250,000+450,000-380,000 = 320,000