Baker’s Bread Shop was established on 1 April 2016 with an initial investment of $100 000 by the owner. During the first few weeks of business, the owner employed a part-time accountant (with only a few months experience) who recorded the following list of assets:

The accountant also recorded the following list of liabilities and equity:

Required
A. Assuming that the amounts above are correct, prepare a corrected balance sheet in narrative form.
B. Determine the amount of profit (loss) made by the business during the period of its first few weeks of existence, assuming that the owner had invested an additional $20 000 into the business just before the above amounts were calculated by the accountant.
C. Prepare a statement of changes in equity for the period.

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Accounts payable Buildings Cash at bank Furniture A. Baker, Capital Baking supplies Loan payable $ 37 100 100 000 31 000 12 000 150 000 5 600 20 700