Solution Manual: Chapter 5 Statement of changes in equity

Chapter 5
Statement of Changes in Equity

PROBLEM 1: TRUE OR FALSE
1. FALSE (100 + 20 – 5) = 115
2. TRUE
3. TRUE (115 end. – 20 profit + 5 dividends) = 100 beg.
4. FALSE (20 comp. income – 5 dividends) = 15 net
increase
5. TRUE


PROBLEM 2: FOR CLASSROOM DISCUSSION
Solution:

Entity A
Statement of Changes in Equity
For the year ended December 31, 20x2
(amounts in Philippine Pesos)
Retaine
Share Unrealized Total
d
capita gains - equit
earning
l FVOCI y
s
1,000, 800,00 2,000,0
Balance, Jan.1, 20x2 000 0
200,000
00
Changes in equity for 20x2:
720,00 720,0
Profit for the year 0 00
Other comprehensive (70,00
income (70,000) 0)
Total comprehensive 650,0
income 00
400,00 400,0
Issue of share capital 0 00
(200,0 (200,00
Dividends 00) 0)
1,400, 1,320,0 130,00 2,850,0
Bal., Dec. 31, 20x2 000 00 0 00

PROBLEM 3: MULTIPLE CHOICE – THEORY
1. D
2. D



1