Problem 1 Answers:

Cookie Fantasy Bakeshop

Statement of Changes in Equity

For the Year Ended, December 31, 20X1

F. Evelyn, Capital, February 15, 20X1 ₱ 75,000

Add: Net Income 37,545

Less: Drawings 15,000

F. Evelyn, Capital, December 31, 20X1 ₱ 97,545

____________________________________________________________________________________________________________________________________________________________________________________________________

Cookie Fantasy Bakeshop

Statement of Changes in Equity

For the Year Ended, December 31, 20X2

F. Evelyn, Capital, January 01, 20X2 ₱ 97,545

Add: Net Income 48,950

Owner’s Contribution 31,050

Less: Drawings 20,000

F. Evelyn, Capital, December 31, 20X2 ₱ 157,545

Problem 2 Answer:

Playdate Kiddie Gym

Statement of Changes in Equity

For the Year Ended, December 31, 20X2

R. Cris, Capital, January 01, 20X2 ₱ 765,430

Add: Net Income 115,465

Less: Drawings 23,555

R. Cris, Capital, December 31, 20X2 ₱ 857,340

Problem 3 Answer:

MNO Partnership

Statement of Changes in Equity

For the Year Ended, December 31, 20X4

Mario Nancy Olga

TOTAL:
Capital Capital Capital
Beginning ₱ 58,960 ₱ 63,200 ₱ 64,890 ₱ 187,050
ADD: Net Income 18,850 28,275 28,275 75,400
Partners 7,640 12,000 19,640
Contribution
LESS: Drawings 5,000 5,430 10,430
Ending ₱ 85,450 ₱ 86,475 ₱ 99,735 ₱271,660

Problem 4 Answer:

JKL Partnership

Changes of Changes in Equity

For the Year Ended, December 31, 20X4

Beginning ₱ 54,900 ₱ 53,200 ₱ 44,890 ₱ 152,990

ADD: Net Income 17,200 17,200 17,200 51,600

Contribution 5,000 5,000 10,000

LESS: Drawings 12,200 11,500 11,200 34,900

Ending: ₱ 64,900 ₱ 63,900 ₱ 50,890 ₱ 179,690

2. Determine of any of the partners violated the partnership contract provision on drawings.

Jaimie had broken the partnership contract provision on drawings by withdrawing a total of $12,200 this
year, despite the fact that the contract stipulated that both parties are only authorized to draw 1,000 monthly,
totaling 12,000 yearly.