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The trial balance of ABC Company on December 31, 2019 shows the following information: Requirements: a. Prepare the statement of financial position of ABC Company
The trial balance of ABC Company on December 31, 2019 shows the following information:
Requirements:
a. Prepare the statement of financial position of ABC Company as of December 31, 2019 by completing all the required information in the pro-forma statement of financial position, including a proper heading for the statement.
Hint: Discount on loans payable is a contra-account to loans payable.
b. Prepare a partial notes showing the breakdowns of the selected line items.
ABC started with a beginning capital of 180,000 on January 1, 2019. The following were the transactions during the year:
a. Mr. A, the sole proprietor of ABC Company made additional capital investments of 360,000 to the business.
b. Total income earned amounted to 1,000,000.
c. Total expenses incurred amounted to 560,000.
d. Mr. A made drawings of 140,000 from the business.
Requirement:
Prepare the statement of changes in equity using the pro-forma statement . Be sure to place a proper heading for the statement.
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