Activity 19.

In this activity you will assemble the data for you to prepare an Income
Statement and Statement of Changes of Equity of Dr. Ngephon a dentist for the
month of September 30, 2019.

Additional Information:
On Sept. 1, 2019, Dr. Ngephon capital balance beginning is P260,000. He made an
additional investment of P15,000 and made withdrawals for personal use amounting to
P350,000.

Dr Ngephon Dental Shop

Income Statement
For the month ended September 30, 2019
REVENUE:
Dental fees P 1,580,000
LESS: OPERATING EXPENSES
Miscellaneous Expense P 5,000
Clinic Supplies Expense 220,300
Rent Expense 120,000
Salaries Expense 96,000
Light and Water Expense 77,000
Depreciation Expense 12,000
OPERATING INCOME P 1,049,700
Less: Professional Developmental Training 85,000
Net Income subjected to tax P 964,700

Dr Ngephon Dental Shop

Statement of Changes of Equity
For the month ended September 30, 2019

Dr Ngephon, Capital-Sept 1, 2019 P 260,000

Add: Additional Investment P 15,000
Profit 964,700 979,700
TOTAL P 1,239,700
Less: Withdrawals 350,000
Dr. Ngephon, Capital- Sept 30, 2019 P 889,700

Activity 20. From the illustration of “Statement of Changes in Equity” of

CHARISMA BEAUTY PARLOR give your best answer on the following
questions.
1. What could be the reason why her capital has increased from P250,000 to P445,310?

- Her capital has increased from P250,000 to 445,310 because of her

net income added to her capital at the beginning less by her
withdrawals.

2. If her withdrawal is equal to the income that she earned, what could be her
capital balance end?

- Her capital balance end will be P250,000

3. What could have been her ending capital balance, if she withdrew P250,000 only?

- Her capital balance could be P245,310 if she withdrew P250,000.