Activity No.

5 - Statement of Changes in Equity

Direction/s: Prepare a Statement of Changes in Equity and answer the following questions below.
vity No. 5 - Statement of Changes in Equity
ion/s: Prepare a Statement of Changes in Equity and answer the following questions below.

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 second 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.

1-4. How much is the total increase in Juan’s capital? P 150,000

5-9. How much is the total decrease in Juan’s Capital? P 35,000

10. How much is Juan’s Capital, ending balance? P 165,000

JUAN SERVICES COMPANY
Statement of Changes in Equity
For the year ended December 31, 2017
Juan, Beginning, 2016 P 50,000
Less: Net loss (25,000)
Add:
Additional investment, 2017 P 50,000 50,000
Net Income 100,000 100,000
175,000
Less: Juan Withdrawal/s (10,000)
Juan, Ending, 2017 P 165,000