FUNDAMENTALS OF

ACCOUNTANCY,BUSINESS,AND
MANAGEMENT 2
Statement of Changes in Equity (SCE)

 All changes, whether increases or decreases to the

owner’s interest on the company during the period
are reported here. This statement is prepared prior
to preparation of the Statement of Financial
Position to be able to obtain the ending balance of
the equity to be used in the SFP. (Haddock, Price,
& Farina, 2012).
FORMS OF BUSINES ORGANIZATION

 SINGLE/SOLE PROPRIETORSHIP- An entity whose

assets, liabilities, income and expenses are centered or owned
by only one person (Haddock, Price, & Farina, 2012).
 PARTNERSHIP- An entity whose assets, liabilities, income
and expenses are centered or owned by two or more persons
(Haddock, Price, & Farina, 2012).
 CORPORATION- An entity whose assets, liabilities, income
and expenses are centered or owned by itself being a legally
separate entity from its owners. Owners are called
shareholders or stockholders of the company(Haddock, Price,
& Farina, 2012).
 INITIAL INVESTMENT- The very first investment of
the owner to the company.
 WITHDRAWALS- Decreases to owner’s equity by
withdrawing assets by the owner (Haddock, Price, & Farina,
2012).
Heading

i. Name of the Company

ii. Name of the Statement
iii. Date of preparation (emphasis on the wording – “as
of”)
Prepare a single-step Statement of Comprehensive Income
using the following:
 Revenues – 20,000
 Rent expense – 3,000

 Salaries expense – 4,000

 Utilities expense – 2,000

Use any business name and the end of the current year for the
heading.
SOLUTION:

COMPANY NAME
STATEMENT OF COMPREHENSIVE INCOME 1. HEADING
FOR THE YEAR (YEAR-END)

 Revenues P 20,000 2. Revenues

Expenses:
 Rent Expense P 3,000
 Salaries Expense 4,000 3.Expenses
 Utilities Expense 2,000 9,000___
 Net Income P 11,000.00 4.Net Income