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    Statement of Changes in Equity - Practice Exercises

    Uploaded by

    Evangeline Gicale
    1. The document provides practice exercises on accounting concepts including: calculating changes in owner's equity given beginning balances, investments, withdrawals and income/losses; classifying transactions as operating, investing or financing activities; and preparing a cash flow statement. 2. Specifically, it asks the reader to calculate ending capital balances and owner withdrawals given initial investments, additional investments, income/losses, and withdrawals for several small business scenarios. 3. It also asks the reader to identify which transactions are operating, investing or financing activities and to calculate the net cash flows for each category based on transactions of a sample small business.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Statement of Changes in Equity - Practice Exercises

    Uploaded by

    Evangeline Gicale
    3K views2 pages
    1. The document provides practice exercises on accounting concepts including: calculating changes in owner's equity given beginning balances, investments, withdrawals and income/losses; classifying transactions as operating, investing or financing activities; and preparing a cash flow statement. 2. Specifically, it asks the reader to calculate ending capital balances and owner withdrawals given initial investments, additional investments, income/losses, and withdrawals for several small business scenarios. 3. It also asks the reader to identify which transactions are operating, investing or financing activities and to calculate the net cash flows for each category based on transactions of a sample small business.

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    Statement of changes in Equity - Practice Exercises.docx

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    1. The document provides practice exercises on accounting concepts including: calculating changes in owner's equity given beginning balances, investments, withdrawals and income/losses; classifying transactions as operating, investing or financing activities; and preparing a cash flow statement. 2. Specifically, it asks the reader to calculate ending capital balances and owner withdrawals given initial investments, additional investments, income/losses, and withdrawals for several small business scenarios. 3. It also asks the reader to identify which transactions are operating, investing or financing activities and to calculate the net cash flows for each category based on transactions of a sample small business.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    3K views2 pages

    Statement of Changes in Equity - Practice Exercises

    Uploaded by

    Evangeline Gicale
    1. The document provides practice exercises on accounting concepts including: calculating changes in owner's equity given beginning balances, investments, withdrawals and income/losses; classifying transactions as operating, investing or financing activities; and preparing a cash flow statement. 2. Specifically, it asks the reader to calculate ending capital balances and owner withdrawals given initial investments, additional investments, income/losses, and withdrawals for several small business scenarios. 3. It also asks the reader to identify which transactions are operating, investing or financing activities and to calculate the net cash flows for each category based on transactions of a sample small business.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Practice Exercises

    Accounting 2 - Senior High School

    1. Beginning owner’s equity amounted to P300,000. Net loss for the year totaled P45,000.
    No additional investments and withdrawals for the period. Compute for the total
    increase in equity for the year,

    2. Ending owner’s equity amounted to P70,000. Additional investments during the year
    amounted to P30,000. Withdrawals totaled P50,000. Compute for the company’s net
    income for the year assuming beginning equity is P10,000.

    3. Owner, Juan invested an initial capital amounting P50,000 in order to put up his
    janitorial services company. During the first year of Operations (2016), the company
    had a loss of P25,000. Because of this, Juan invested additional capital amounting to
    P50,000 in 2017. In the secnd year (2017), the company had a net income of P100,000
    and Juan withdrew P10,000 for personal use. Compute for the ending capital balance of
    Juan for the year 2017.

    4. Owner, Juana invested P100,000 to start her laundry business. During the first year of
    operations (2016), the company had a net income of P15,000. Juana invested additional
    P100,000 to grown the business. In 2017, the business earned P50,000. As of
    December 31, 2017, Juana’s capital balance is P200,000. How much is Juana’s
    withdrawal?

    5. The following balances were retrieved from the records of Juan’s Janitorial Services for
    the year ended December 31, 2016.

    Capital, January 1, 2016 P 500,000.’


    Withdrawals 100,000.
    Additional investments 50,000.
    Net Loss 45,000

    Prepare the Statement of Changes in Equity.


    Page 2

    Practice Exercise – Acctg. 2

    Identify which of the following transactions fall under operating, investing and financing
    activities:

    a. Cash received from customers


    b. Cash paid to suppliers
    c. Cash paid to employees
    d. Cash paid to purchase equipment (company does not sell equipment)
    e. Cash received from sale of furniture (company’s main line of business is not related to
    furniture)
    f. Depreciation expense
    g. Sale of goods on credit
    h. Purchase of goods on credit
    i. Cash received from getting a loan from a bank
    j. Cash paid to owners.

    Juana’s sari-sari store had the following transactions during the year:

    a. Purchase of goods. Paid cash P100,000.


    b. Sale of goods. Received cash. 150,000.
    c. Paid utilities 30,000.
    d. Paid rent 10,000.
    e. Sold equipment for cash 100,000.
    f. Owner’s withdraws investment 10,000.

    a. Compute the net cash flow generated by/used in operating activities.


    b. Compute the net cash flow generated by/used in investing activities.
    c. Compute the net cash flow generated by/used in financing activities.

    Prepare a Cash flow Statement.

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