[FABM2] Lesson 037 - Statement of Changes in Equity

Summary

This video script is an educational lesson on accounting principles, focusing on the preparation of income statements for different business entities such as proprietorships, partnerships, and corporations. It covers the elements of an income statement, the calculation of net income, and the statement of changes in equity. The lesson aims to guide students through the process of understanding and creating financial reports, emphasizing the importance of capital balance and its adjustments throughout the accounting period.

Takeaways

• 📚 The script is a lesson on accounting principles, focusing on the preparation of income statements and the understanding of different business organization forms.
• 🏫 It is intended for students at Season Thirty-Seven Senior High School, part of a constructive accounting course.
• 🔍 The lesson covers the review of elements of an income statement, including revenue, expenses, and the preparation of both single-step and multi-step income statements.
• 📈 The method of natural expense is discussed, which is important for the preparation of income statements.
• 👨‍🏫 The instructor encourages students to like and subscribe for support, indicating that the content is part of an online learning series.
• 🌐 Reference is made to the impact of the pandemic on self-study and online learning, suggesting the lesson is part of a response to educational challenges.
• 📈 The script mentions various forms of business organizations, such as sole proprietorship, partnership, and corporation, and how they affect equity.
• 💡 The importance of understanding the statement of changes in equity, including the beginning and ending balances, additional investments, net income, and withdrawals, is highlighted.
• 🔑 The script provides an example of how to calculate the capital balance at the end of an accounting period, emphasizing the formula for net income.
• 📝 There are mentions of problems and exercises related to accounting for partnerships and corporations, indicating practical application of the concepts taught.
• 📚 The lesson concludes with an invitation to learn more about accounting for partnerships and corporations in subsequent lessons.

Q & A

What is the main topic of the video script?

The main topic of the video script is accounting lessons, specifically focusing on the preparation of income statements and the understanding of different forms of business organizations.

What are the different forms of business organizations mentioned in the script?

The script mentions sole proprietorship, partnership, and corporation as the different forms of business organizations.

What is the purpose of reviewing the elements of an income statement in the lesson?

The purpose of reviewing the elements of an income statement is to understand the components that make up the financial performance of a business, including revenue, expenses, and ultimately, the net income or loss.

What is a single-step income statement and what is its purpose?

A single-step income statement is a simplified financial statement that shows the company's revenues, deducts the expenses, and arrives at the net income or loss in one step. Its purpose is to provide a quick overview of a company's profitability.

What is a multi-step income statement and how does it differ from a single-step income statement?

A multi-step income statement is a more detailed financial statement that breaks down the components of income into categories such as operating income, income from investments, and other gains or losses. It differs from a single-step income statement by providing a more comprehensive view of a company's financial performance.

What is the significance of understanding the preparation of an income statement?

Understanding the preparation of an income statement is significant as it allows individuals to analyze a company's financial health, make informed decisions, and evaluate the company's profitability over a specific period.

What is the role of 'net income' in the context of the income statement?

Net income represents the profit or loss of a company after all revenues and expenses have been accounted for during a specific period. It is a key indicator of a company's financial performance and is used to assess the overall success of the business.

What is the accounting equation, and how is it related to the capital balance in the script?

The accounting equation is Assets = Liabilities + Equity. It is related to the capital balance in the script as the capital balance represents the equity of a sole proprietorship, and changes in capital are recorded based on the net income, additional investments, and withdrawals by the owner.

Why is it important to track the capital balance for different forms of business organizations?

Tracking the capital balance is important as it reflects the financial position of the business and the owner's equity. It is crucial for making business decisions, assessing the performance of the business, and for compliance with accounting standards and regulations.

What is the script's approach to explaining the statement of changes in equity?

The script explains the statement of changes in equity by starting with the beginning capital balance, adding additional investments by the owner, accounting for net income, and then subtracting any withdrawals by the owner to arrive at the ending capital balance.

How does the script address the concept of withdrawals and additional investments in the context of a sole proprietorship?

The script addresses the concept of withdrawals and additional investments by showing how these transactions affect the capital balance of a sole proprietorship. Withdrawals reduce the capital balance, while additional investments increase it.

Outlines

00:00

📚 Introduction to Accounting for High School Students

This paragraph introduces an accounting lesson for students at a high school, specifically targeting constructive accounting principles. It mentions the expectation for students to review different forms of organizations and prepare income statements. The lesson includes elements of financial statements, single and multi-step income statements, and natural expense methods. The instructor encourages students to like and subscribe for support and mentions the relevance of accounting concepts for self-study during a pandemic.

05:00

🔍 Detailed Explanation of Capital Statement Preparation

The second paragraph delves into the preparation of capital statements, explaining the process from the beginning balance, additional investments, net income or loss, and withdrawals by the owner. It emphasizes the importance of understanding how these elements affect the capital balance at the end of the accounting period. An example is provided with specific figures to illustrate the calculation of the capital balance, including the impact of additional investments and net income on the final balance.

10:02

🧐 Solving Accounting Problems for a Trading Company

This paragraph discusses the solution to an accounting problem involving a trading company. It outlines the steps to calculate the capital balance, taking into account the beginning capital, additional investments, net income, and withdrawals by the owner. The explanation includes a formula for determining the net income and how it affects the ending capital balance. The paragraph also hints at the importance of understanding the accounting period and its impact on the capital statement.

15:05

🤝 Capital Statements for Partnerships and Corporations

The final paragraph focuses on capital statements for partnerships and corporations. It explains the concept of capital contributions, net income, and withdrawals in the context of these business structures. The paragraph provides insights into how these elements are accounted for in the capital statements of partnerships and corporations, emphasizing the distribution of profits and the calculation of retained earnings. It also touches on the importance of understanding the nature of equity components in these business forms.

Keywords

💡Accounting

Accounting is the systematic recording, reporting, and analysis of financial transactions related to a business or other entity. In the video, it is central to the theme as it discusses various accounting concepts such as income statements and equity statements, which are essential for understanding a company's financial health.

💡Income Statement

An income statement is a financial statement that reports a company's financial performance over a specific accounting period, including revenues, expenses, and net income. The script mentions learning how to prepare both single-step and multi-step income statements, which are crucial for evaluating a company's profitability.

💡Expense

Expenses are costs incurred by a business in the course of its operations, excluding costs associated with acquiring or disposing of assets. The script refers to the method of preparing an income statement and includes expenses as part of the calculation for net income.

💡Equity

Equity represents the ownership interest of shareholders in a company, often quantified by the difference between a company's assets and liabilities. The video discusses the statement of changes in equity, which outlines how equity changes over time due to net income, investments, and withdrawals.

💡Partnership

A partnership is a business structure where two or more individuals share ownership and management of a business. The script discusses the accounting for partnerships, including how to prepare a capital statement for partners, which reflects their investment and share of profits or losses.

💡Corporation

A corporation is a legal entity owned by shareholders, which is separate from its owners and has its own rights and liabilities. The video mentions accounting for corporations, including the preparation of financial statements that reflect the corporation's financial position.

💡Net Income

Net income, also known as the bottom line, is the profit a company makes after deducting all expenses from its revenues. The script uses the term in the context of calculating the ending capital balance, which includes net income as a factor.

💡Capital Balance

Capital balance refers to the amount of money that a business or individual has invested in an enterprise, plus any profits that have been reinvested. The script discusses how to calculate the capital balance at the end of an accounting period, taking into account net income and withdrawals.

💡Statement of Changes in Equity

This financial statement shows the changes in equity during a financial period, including the effects of net income, investments, and withdrawals. The script mentions this statement as part of the accounting process for businesses.

💡Financial Statements

Financial statements are formal records of a business's financial activities, including balance sheets, income statements, and cash flow statements. The video's theme revolves around understanding and preparing various financial statements, which provide insight into a company's financial performance and position.

💡Proprietorship

A proprietorship is a type of business entity that is owned and run by one individual. The script briefly touches on the concept of a sole proprietorship and its accounting treatment, which is simpler compared to partnerships and corporations.

Highlights

Introduction to Tsubasa counting lesson for accounting at Season Thirty Seven Senior High School.

Explanation of constructive accounting and the importance of reviewing different forms of organizations.

Learning objectives include understanding the elements of income statement, revenue, expense, and preparation methods.

Introduction to single-step and multi-step income statements and the function of expense.

Discussion on the preparation of income statements and accounting problems related to them.

Importance of understanding financial statements such as the balance sheet, income statement, and statement of comprehensive income.

The impact of business organization forms on equity and financial reporting.

Different types of business entities like sole proprietorship, partnership, and corporation.

Details on how net income and owner's drawings affect the capital balance in a business.

The process of calculating capital balance at the end of an accounting period.

Introduction to Statement of Changes in Equity and its components.

The significance of the accounting period and its relation to capital balance.

Case study on a trading business to illustrate the preparation of an income statement.

Problem-solving approach for accounting problems involving capital balance, net income, and withdrawals.

The concept of retained earnings and its role in the statement of changes in equity.

Differentiating between accounting for partnerships, proprietorships, and corporations.

The importance of understanding the capital account within each business structure.

Final thoughts on the importance of accounting in business operations and decision-making.

Transcripts

hai hello dear students welcome to site

tsubasa counting lesson study at the

season thirty seven senior high school

konstruktif accounting for three

andragogi pairing the segment of the

next ardian debit your expected to

review the different forms of these

organizations preparestatement khai of

partying corporation oke so when the

last season will learn the following

show review the elements of income

statement revenue expense website with

guns n roses and the new

learn how to prepare a single step

income statement ane multi-step income

statement to have without the function

of expense metode natural expense

message of the preparation of the income

statement and we also some sama counting

problems about the income statement oke

sutopo santai sebelum setup.exe income

statement prewedding vodka veltman jumpa

ngeplong fs kehilangan dateng betul oke

so before anything else please like and

subscribe today counting least one piece

thank you for your support anda

seandainya kartu yongying videos for

your online learning imejs pandemik

influenza mengenai self-study orden sama

gustom advance studi saham lelang

lessons for fbm yan enstomach students

review konsep tentang accounting yang

selamat support yang udah tahu

slide show agenan freeport non financial

statement sctv information about the

fans of possession finance officer for

much fun ntt ntt useful to a wide range

of users parasaan tombak ekonomi the

season that from each one presentation

of financial statement oke so naga wanna

ten young assets liabilities and equity

on the statement of income and expenses

including losses statement of

comprehensive income and construction

bye and contributions to understand the

capacity as on the statement of changes

in equity oke so alam nasi goreng khas

blouse oke so that the forms of

organizations and bekerja hilang

introduce sebagai tayo magnostadt untuk

senin

git keset the forms of business

organization will affect kong anung urai

itu renang segmentation equity nah

kehilangan hati ngepet oke software is

we have the soul proprietorship tipe

business credit to crash landing on you

picture saranghae berdecak cbn.net lex

oke and then we also help partnership

credit to the picture from blackberry

anda corporation credits to the texture

my golden life uang bomb it may change

from kriya broadcasting system oke so

please be when i read only one person on

the business but not literally sedang

d'omah gelombang sahabat4d sydney sayumi

are people

akhir-akhir senang employers kembaga

selang owner key about our safety about

how many people are working in the

company at about how many hours oke

koplak apartment two or more people

combining order ashland ampere

postnewstime namanya net income rw.no

operations megah hati-hati andela yuwono

flash net income oke defying the profits

among themselves and furious 6 in the

owner is the way that in the website

defende yunus mukhson oke indonesia now

forever the sound of the different forms

of these organizations can go back the

lessons on dvd much for the different

forms of the organization oke saw the

state of sciences in equity

the following items full fairing the

capitol statement for each step out

these should khoirul balance at the

start of any additional investment and

contribution by the owner and the net

income android warnet loss of the

company and withdrawals me by owner and

capital balance at the end of the

accounting period or adjust the capital

balanced remember that help setting-an

the accounting period is the capital of

the next accounting period di ending

balance the series the beginning balance

next usaha agen di ending balance the

year is the beginning balance naksir di

ending balance in vase accounting period

is the beginning balance in the next

period that clear oke so instead of

equity we start with the beginning and

dance

wia deni additional endorsement by the

owner and then we are the net income

senang gagal net income information

galangsa statement of comprehensive

income oke spheroid dogna t6n kung

sakali ngnet lotion citra is one key and

then we also the dark cold drawn by the

owner which will give your ending

capital balance and again the ending

capital at the beginning capital next

accounting period oke so much for the

free download thirty seven and the

lengket available in the description

boks oke so let's start let me with you

the problem recognation company is our

prayers trading business on by men

santos husband of writing successfully

for years now tkp

ia under the stars the accounting period

januari want to eat amounted to millions

seven eight nine ten di ntt android

income statement the owner however with

rukhsah m0dangan the way talking about

accounting oke selain di langsa on

strong working about accounting period

which comprises oke so we start with the

heading the name of the company and the

network the haves

menthok changers inequity friday ended

december 21st make so we start with the

capital balance from the previous

accounting period with two million seven

hundred eighty nine thousand six hundred

74w additional investment by the owner

amounting to four hundred thousand and

then we are the net income of seven

hundred eighty nine thousand six hundred

and with the drawn by the owner wssv

thousand software from the calculation

yubel get the capital balance at the

same with the one to exert amounting to

three millionaire threehundred anda tahu

you prepared statement of changes in

equity khss baik lelang keiko's depends

recommended online shop for you may be

taking a glance of

tauhid dan in partnership in corpore

soundtrack ytrd dpr masih adol oke so

let's try something so much fans dateng

gawe basah m problem ipo song with your

it raisa goten dan play the video agen

when you're ready to learn the solution

problem number one piece company started

the accounting period with capital

balance for hundreds thousand and the

devil you today capital building

software hanso 7400 during the period

the owner and investment of ten thousand

and personal growth of how much the net

income androidlost of the company

serving the period a-b-c ente shophouse

dvd ottrie answering the problem and

then placed against when you're ready

hai oke assuming that you have already

post the video and answer the problem

let's discuss the solution attention

because you're from the last breath

yonda tenkes you're doing ask.fn net

income question birthday amounts of

revenues and expenses not available at

might come from the capital balances oke

remember that begining capital

investments in kami nabi yunus heart now

with growth together ending karpet

nugget noe question saw your solution

should look like this oke the beginning

kapitalisme hanya thirty six thousand

years myadsnow investment.com keygen

imam i'm nothing without you by the

owner winning365.com

dapatkah knockon fitnatin babak you

follow the equations of sleeping ad juta

laga ponsel nabi yunus no telepon

handapna tinggi tna atma gagal angkasa

babak kyt balik tarimo shalat namun ia

atmo atlet nanga di lesmo some are saat

ini tagged net income is ending kapital

plus withdrawals minus additional

investment minus beginning capital

sonatine comments for hundreds of

thousands + 2000 minus tasyrik jonathan

come on off 2001 letter c i

hai oke so i hope you understand

khususnya with rekontama edi reforme

begini kapiten overheads tosan aji

edelweis fentosan addmenow.ned

incomplete touch key dan minho twenty

thousand dapat lebah super hundred

seventyfour thousand oke let's create

problems with ibm company's capital

balance of three hundred thousand on the

site won't allow

hai juring 27 net income opportunity

thousand and personal owner withdrawals

amounted to exert husband in the faculty

of ada company to sustain operations

additional investments in the middle of

21 among the thousand however lo stilts

over the moon two thousand browse by the

owner for personal use amounted to find

out how much should be reported by the

company as capital balance on the

desember itu exit pigmentation equity

soul.net cnd posted by answering the

problem and played against when you're

ready to

hai oke assuming that i have already

android problem desas-desus one oke shop

aroma zuhaira banteng nanda hilma rame

parangtritis yks tasbih lentek dxc

bentes 20xx remember angan statement of

changes in equity deret-deret lampu

pakaian tapikong aslinya di ending

capital of twenty xster begining

kapitalof 27nd ending kapitalof 21ns the

beginning capitals 20xx dan ulang sahid

to lose smufey deret-deret so tapi sulit

oleh timberlake question show hippoplast

mulang lahat now given ditosa for bilang

itu you start with the beginning capital

nang ah twenty-eight di ending capital

20xx nanti hundred thousand tapi syuting

20xa venezuela kasih tahu edition in

basement joined nalnet income neng

kitosan dan eminem without sanford 20

seven

sang ending badan semua 1x seven tri

hundred seventy tahu santi tapus tentu

ntxx now naga renang ada sule investment

safety thousand pero net lose it's okay

santai 1xx imam minus monumen nyonya

forty thousand dan imam main smule young

web browser 20 snapfile thousands of the

capital balance out desember twin cities

threehundred itu jose letter bishoftu

problem nato each statement nah itu

encompasses two full years into your

langsa oke so i hope you understand our

multiple choice questions so i'll be

giving you a glance kunjungi curahnongko

statement for partnership alamnya nama

anaam partnership i-one baitu or more

people husna country futsal indonesia

partnership pasang gorden ngomongnya re

megha hati-hati selesai net income

songong itu renang capital statement

news it's fine army ngolum nang solo

proprietorship pisang partner legends

menang kolom shalat savegram pool den

jongkok has a rich silently oke so high

sangka vitalnya country zain pisang

capital account within each scene the

total aset kapital balance stop us now

beginning tapos edition konsep you

should add me on net income and

withdrawals kaze next ysn hati yan

setrum partner base saus vanila prediksi

lama pusat naik wall distribution or

prewedding marshmallow yin kasih mas

mendaki on-time keno contributes

partnership wedding march sih anggina

gowa nyelengi promo sounds very detail

agasa aktif dan storium agan domba

temaram inviting ikon shaders savage the

white nonprofit oke so ganyong itu

renang capital statement for partnership

and you will learn about partnerships in

accounting for partnership in

corporesano kualanamu gunung subjects

such fun accounting part one down papago

usahakan 41 oke di bagian on pada

indonesia begini kapitalitas

contributions gas net income minus

withdrawal theron akan detail ilang per

partner oke anoman pong itu renang

capital statement for corporations

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imanto

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flows agen beramai-ramai selamat pov

out mau support and maybe a serious

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endang frogfish leave them down in the

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