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I will attached my questions. A sample structure of a Statement of Changes in Capital of a Sole Proprietorship business is the following: (NAME OF

I will attached my questions.

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A sample structure of a Statement of Changes in Capital of a Sole Proprietorship business is the following: (NAME OF COMPANY) Statement of Changes in Capital For the Year Ended December 31 Mr. B Capital, beginning 0.00 Add: Additional investment 0.00 Net income or 0.00 Net loss (0.00) 0.00 Total 0.00 Less: Drawings (0.00) Mr. B Capital, end 0.00illustration 5 The merchandising business of RDW Enterprises is planning to get an exclusive distributorship of beauty products in addition to its merchandising business. To get into this, its prospective client requires them to submit an interim income statement ending September 30, 2016. The following is the trial balance covering the period January to September, 2016. You are required to prepare a multi-step income statement for the period ending September 30, 2016. After conducting a physical count, the Merchandise Inventory as of September 30, 2016 amounted to P 525,000.00. Illustration 6 Using the trial balance and income statement from illustration 5, let us prepare the Statement of Changes in Capital for RDW Enterprises for the period ending September 30, 2016. Additional information is as follows: a. The beginning capital of RDW in Jan 1 was P1942300. b. D . g the period. the owner invested additional equipment amounting to 150,000, c. In addition, the owner invested cash amounting to P150,000. Chapter 3: The Users of Accounting Information Income Statement of RDW Enterprises: ROW ENTERPRISES Statement of Income For the Period Ended September 30, 2016 Gross Sales Less: Sales Returns & Allowances 5,500,000.00 Sales Discounts 156,500.00 Net Sales 200,000.00 356,500.00 Deduct: Cost of Goods Sold 5,143,500.00 Gross Income 2,630,000.00 Less: Operating Expenses 2,513,500.00 Selling Expenses 1,041,850.00 General & Administrative Expenses 719,000.00 Net Operating Income 1,760,850.00 752,650.00 Add (less): Other Income & Expenses Interest income 5,750.00 Losses 15,500.00 -9,750.00 Net Income for the Period 742,900.00 Trial Balance of RDW Enterprises: RDW ENTERPRISES Trial Balance September 30,2016 Debit Credit Cash 1,030,000.00 Accounts receivable 250,000.00 Allowance for uncollectible accounts 25,000.00 Merchandise inventory, Jan 1 175,000.00 Store supplies 25,200.00 Prepaid rent 100,000.00 Office equipment 125,000.00 Furniture & fixtures 55,000.00 Delivery Vehicle 750,000.00 Accumulated deprecition 75,000.00 Accounts payable 500,000.00 Vat payable 75,000.00 300,000.00 Loans payable RDW Capital 1,242,300.00 RDW Drawings 100,000.00 5,500,000.00 Sales Sales returns & allowances 156,500.00 200,000.00 Sales discounts 5,750.00 Interest Income 3,500,000.00 Purchases Purchase returns & allowances 225,000.00 350,000.00 Purchase discounts 55,000.00 Freight in 15,500.00 Inventory losses Selling Expenses 1,041,850.00 General & Administrative Expenses 719,000.00 8,298,050.00 8,298,050.00Chapter 2: The Statement of Comprehensive Income RDW ENTERPRISES Trial Balance September 30,2016 Debit Credit Cash 1,030,000.00 Accounts receivable 250,000.00 Allowance for uncollectible accounts 25,000.00 Merchandise inventory, Jan 1 175,000.00 Store supplies 25,200.00 Prepaid rent 100,000.00 Office equipment 125,000.00 Furniture & fixtures 55,000.00 Delivery Vehicle 750,000.00 Accumulated deprecition 75,000.00 Accounts payable 875,000.00 RDW Capital 1,242,300.00 RDW Drawings 100,000.00 Sales 5,500,000.00 Sales returns & allowances 156,500.00 Sales discounts 200,000.00 Interest Income 5,750.00 Purchases 3,500,000.00 Purchase returns & allowances 225,000.00 Purchase discounts 350,000.00 Freight in 55,000.00 Inventory losses 15,500.00 Selling Expenses Salaries & wages 450,000.00 Sales commissions 225,000.00 Advertising expenses 25,400.00 Freight out 12,700.00 Store rent expense 225,000.00 Store supplies 22,500.00 Depreciation expense 56,250.00 Uncollectible accounts expense 25,000.00 General & Administrative Expenses Salaries & benefits 405,000.00 Rent expenses 225,000.00 Depreciation expenses 13,500.00 Insurance expenses 22,000.00 Office supplies 13,500.00 Light and water 12,500.00 Professional fees 20,000.00 Miscellaneous expenses 7,500.00 8,298,050.00 8,298,050.00

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