FINANCIAL ACCOUNTING

WEEK 12
BSBA 112
STATEMENT OF OWNER’S EQUITY
APRIL 12, 2022
 ABC Company
Statement of Changes in Owner’s Equity
For the Year Ended, December 31, 2021

Mr. A. Cortez Capital, January 1, 2021 P

500,000.00
Add: Net Income P 125,000.00
Additional Investment 200,000.00
325,000.00
Total P 825,000.00
Less: Mr. A Cortez Withdrawals 250,000.00
Mr. A. Cortez Capital, December 31, 2021 P
575,000.00
 ABC Company
Statement of Changes in Owner’s Equity
For the Year Ended, December 31, 2021

Mr. A. Cortez Capital, January 1, 2021 P

500,000.00
Add: Additional Investment
200,000.00 Total
P 700,000.00
Less: Mr. A Cortez Withdrawals 250,000.00
Net Loss 125,000.00
375,000.00
Mr. A. Cortez Capital, December 31, 2021 P
325,000.00
When do we say that a business’ result of
operation is

Net Income
Income is greater than
expense

Net Loss
Income is less than expense
Statement of Changes in Owner’s Equity
- The information presented in this statement identifies
the changes in asset and liability balances arising from
transactions with equity participants
- It presents among others, the effect on the equity
balances arising from operations, and contributions from
the distribution to owners.
- This statement shows the link between Statement of
Financial Position and Statement of Comprehensive
Income
- This statement varies depending on the form of business
(i.e., sole proprietorship, partnership, or corporation)
- This statement shows the owner’s capital at the start of
the period, the changes that affect capital, and the
- This statement varies depending on the form of
business
(i.e., sole proprietorship, partnership, or
corporation)
DEF Company
Statement of Changes in Owner’s Equity
For the Year Ended, December 31, 2021

Mr. D. Fioni Capital, January 1, 2021 P 500,000.00

Add: Additional Investment 200,000.00
Total P 700,000.00

Less: Mr. D. Fioni Withdrawal P 250,000.00

Net Loss 150,000.00 400,000.00
Mr. A. Cortez Capital, December 31, 2021 P 300,000.00
 - This statement varies depending on the form of
business
(i.e., sole proprietorship, partnership, or
DEF Partnership
Statementcorporation)
of Changes in Owner’s Equity
For the Year Ended, December 31, 2021

Partner D Partner E Partner F

Capital accounts changes due to:
Initial Investment P500,000.00 P400,000.00
P300,000.00
Additional Investment 100,000.00 50,000.00

Total P600,000.00 P450,000.00

P300,000.00

Drawing accounts changes due to:

Share in Net Income(loss) P100,000.00 P100,000.00
P100,000.00
Withdrawals 80,000.00 75,000.00
60,000.00
- This statement varies depending on the form of
business
(i.e., sole proprietorship, partnership, or
XYZ Corporation
corporation)
Statement of Changes in Owner’s Equity
For the Year Ended, December 31, 2021
Common Stock
Preferred Stock
Additional Paid-in Capital
Retained Earnings
Total Stockholder’s Equity

Shareholder’s Equity, January 1, 2021

Add: Net Income
Issuance of new stocks
Less: Dividends declared
Net Loss
Shareholder’s Equity, December 31, 2021