Activity 19.

In this activity you will assemble the data in order 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. NEPHON DENTAL CLINIC

INCOME SATEMENT
For the year ended September 30, 2019
REVENUE:
Dental Fees P 1,580,000
Less: OPERATING EXPENSE
Miscellaneous Expense P 5,000
Clinic Supplies Expense 220,300
Dental Fees 1,580,000
Rent Expense 120,000
Salaries Expense 96,000
Light and Water Expense 77,000
Depreciation Expense 12,000
Professional Development and 85,000 2,195,300
Training
TOTAL P 615,300
Operating Income P 964,700
 DR. NEPHONE DENTAL CLINIC
STATEMENT OF CHANGES IN EQUITY
For the year ended September 30, 2019
Nephon Capital Beginning P 260,000
Add: Additional Investment P 15,000
Net Income 964,700 979,700
TOTAL 1,239,700
Less: Withdrawals (350,000)
Nephon Ending Capital 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?
The reason why Charisma Beauty Parlor increase from P250,000 to P445,310 it is
because of the additional net income costing P245, 315 and less to the withdrawals
costing P50,000..
2. If her withdrawal is equal to the income that she earned, what could be her
capital balance end?
Charisma Beauty Parlor balance end would be P250,000 (495,310-245,310).
3. What could have been her ending capital balance, if she withdrew P250,000 only?
If she withdrew P250,000 then her ending capital balance would be P245,310
(495,310-25,000).