Question

	Total	Social Capital	Income of the year	Income of past years	Legal Reserve
2015	272,000	200,000	30,000	40,000	2,000

In 2016, the company's management makes the following movements:
to. 5% of the profit is transferred to the legal reserve
b. 60% of the previous year's profit remains in the company
c. The rest of the profit of the previous year is paid to the shareholders via dividends
d. The shareholders decide to increase the capital by 50,000
and. The company generates profits of 45,000 pesos in 2016

Presents the Statement of Changes in stockholders' equity.

Answer 1

	Particulars	Total	Social Capital	Income of the year	Income of past years	Legal Reserve
2,015	Opening	272,000.00	200,000.00	30,000.00	40,000.00	2,000.00
2,016	Profit of the year			45,000.00
	Dividend			(12,000.00)
	Transfer			(2,250.00)		2,250.00
	Issue		50,000.00
	Closing	355,000.00	250,000.00	60,750.00	40,000.00	4,250.00