Prepare a Statement of Changes in Equity from the Adjusted

question 156

Essay

Prepare a statement of changes in equity from the adjusted trial balance above.Mr.Clausen's capital account balance of $30,520 consists of a $20,520 balance on January 1,2015,plus an additional $10,000 investment during 2015.

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Definitions:

Adequate Consideration

Something of value that is deemed by law to be sufficient grounds for enforcing a party's obligation under a contract.

Legal Detriment

The loss or disadvantage that a party agrees to suffer within a contractual agreement which gives value to the contract.

Doctrine of Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made to another if the latter has relied on that promise to their detriment.

Charitable Subscriptions

Commitments made by individuals or organizations to donate money to charities, typically on a recurring basis.