FA29 - Merchandiser's Financial Statements - Stmt of Changes in Equity

Summary

In this instructional video, the presenter guides the audience through the process of creating a Statement of Changes in Equity for Julie's Plumbing Supplies. Starting with the company's name and the statement's title, the video covers the basic components: common shares and retained earnings. The presenter demonstrates how to calculate changes in equity for the fiscal year ending March 31st, 2024, by adding net income and subtracting dividends. The video concludes with a neatly formatted statement, ensuring the math checks out, and teases the next topic: the balance sheet.

Takeaways

• 📌 The company being discussed is Julie's Plumbing Supplies.
• 📋 The task at hand is to create a statement of changes in shareholders' equity for the year ending March 31, 2024.
• 📈 The statement includes three main components: common shares, retained earnings, and totals.
• 💼 The beginning balance for common shares was $1,000, and it remained unchanged throughout the year.
• 📊 Retained earnings started at $41,000 and was affected by the net income of the year.
• 💹 The net income, as calculated from the income statement, was $57,000, which was added to the retained earnings.
• 💸 Dividends of $6,000 were paid out, which were then subtracted from the retained earnings.
• 🔢 The ending balance for retained earnings was calculated to be $92,000 after adjustments.
• 📝 The totals for the statement were correctly double underlined and dollar signs were placed appropriately.
• 🖥️ The speaker mentions using OneNote for creating the statement and provides feedback on its features.
• 📚 The video is part of a series, with the next video focusing on the balance sheet.

Q & A

What is the name of the company mentioned in the transcript?

The name of the company mentioned in the transcript is Julie's Plumbing Supplies.

What financial statement is being discussed in the transcript?

The transcript discusses the preparation of the Statement of Changes in Shareholders' Equity for Julie's Plumbing Supplies.

What are the key accounts involved in the Statement of Changes in Shareholders' Equity as mentioned in the transcript?

The key accounts involved in the Statement of Changes in Shareholders' Equity are common shares and retained earnings.

What is the starting date for the financial period discussed in the transcript?

The starting date for the financial period discussed in the transcript is April 1st, 2023.

What was the amount of common shares at the beginning of the year according to the transcript?

According to the transcript, the amount of common shares at the beginning of the year was $1,000.

What was the initial retained earnings balance at the start of the year?

The initial retained earnings balance at the start of the year was $41,000.

What is the net income amount that is added to retained earnings as per the transcript?

The net income amount that is added to retained earnings, as per the transcript, is $57,000.

What is the amount of dividends that were deducted from the retained earnings according to the transcript?

According to the transcript, the amount of dividends deducted from the retained earnings is $6,000.

What is the final balance of retained earnings after all adjustments as mentioned in the transcript?

The final balance of retained earnings after all adjustments, as mentioned in the transcript, is $93,000.

What software does the speaker mention using for the demonstration in the transcript?

The speaker mentions using a software called OneNote for the demonstration in the transcript.

What is the next financial statement the speaker plans to discuss in the following video according to the transcript?

According to the transcript, the next financial statement the speaker plans to discuss in the following video is the Balance Sheet.