STATEMENT OF

COMPREHENSIVE INCOME
ACTIVITY 1: Students will be asked to classify
ARRANGE ME! the following media sources to their
type (print , broadcast, film new)

NET SALES

COST OF GOODS SOLD

GROSS PROFIT

OPERATING EXPENSES

NET PROFIT/NET LOSS

ACTIVITY 1 : LETS COMBINE

PARTNERSHIP
ACTIVITY 1

BUSINESS
ACTIVITY 1

SOLE PROPRIETORSHIP
ACTIVITY 1

NET INCOME
ACTIVITY 1

EQUITY
 FABM 2
STATEMENT OF CHANGES
IN EQUITY
 STATEMENT OF
CHANGES IN
EQUITY
OBJECTIVES:
1.Classify and differentiate the
different forms of business
organizations;
2.Discuss what the statement of
changes in equity is;
3.Prepare a statement of changes
in equity for sole proprietorship.
 STATEMENT OF
CHANGES IN
EQUITY
ACTIVITY 2 : CLASSIFY ME

Directions: Classify the

given pictures according to
the number of ownership.
 THREE MAJOR TYPES OF
BUSINESS ORGANIZATIONS

• Sole Proprietorship -
a business organization
owned by one person.
Also known as single
proprietorship.
 THREE MAJOR TYPES OF
BUSINESS ORGANIZATIONS
• Partnership – Two
more persons bind
themselves to
contribute money,
property, with the
intention of dividing
the profits among
themselves.
 THREE MAJOR TYPES OF
BUSINESS ORGANIZATIONS
• Corporation – artificial
being created by
operation of law, having
the right of succession
and the powers,
attributes and properties
expressly authorized by
law or incident to its
existence.
ELEMENTS AND PREPARATION OF STATEMENT OF CHANGES
IN EQUITY

BEGINNING CAPITAL- OWNERS INITIAL CAPITAL OR INVESTMENT

TO OPEN OWNER’S EQUITY ACCOUNT.

ADDITIONAL INVESTMENT – ANY CAPITAL THAT WAS ACQUIRED

DURING THE OPERATION

NET INCOME OR NET LOSS- AMOUNT EARNED OR LOSS BY AN

ENTITY FOR THE YEAR REFLECTED ON THE SCI AND EXTENDED
SOCE. NET INCOME WILL BE ADDED.
ELEMENTS AND PREPARATION OF
STATEMENT OF CHANGES IN EQUITY

WITHDRAWAL- DEDUCTION FROM THE

OWNERS CAPITAL FOR PERSONAL USE

ENDING CAPITAL- AMOUNT REFERS TO THE

TOTAL CHANGE IN MOVEMENT IN OWNER’S
CAPITAL.
• Algeria Support Services
was started by Mr. Lim in
2015 with a capital of
P20,000. During the Year,
Mr Lim invested another
P12,500 in the business.
Also, Algeria Support
Services earned a net
income of P10,000. Finally
he withdrew P7500.
• Activity 4: SHOW ME YOUR ANSWER
• Recognition Company, a sole proprietorship trading business owned by
Jess Mae Sleepy, has been operating successfully for years now. The
capital of the owner at the start of the accounting period, January 1,
2018, amounted to P2,789,674. During the year, the owner decided to
raise the capital balance by P400,000 worth of additional investment of
cash. The entity enjoyed tremendous sales and reported net income in
the income statement amounting to P789, 674. The owner, however,
withdrew P50,000 cash for a personal emergency purpose. No other
equity activities have been noted during the year.
• Prepare the entity’s Statement of Changes in Equity for the year ended
December 31, 2018.
•.
ASSIGNMENT
A. Review todays lesson.
B. ACER Company started the accounting period
with a capital balance of P456,000 and ended the
period with a capital balance of P474,000.During
the period , the owner made an additional
investment P10,000 and personal withdrawals of
P20000. How much is the net income enjoyed or net
loss suffered by the company during the period?