Determination of Final Stockholders' Equity

To determine the final Stockholders' Equity, the income and the additional contributions of Capital, and the expenses and partial reductions of Capital.
In order to better interpret what is expressed in the previous paragraph, an illustrative table is presented on the next page; observe carefully the effects that increases or increases produce in the Stockholders' Equity account decreases in the Assets and Liabilities accounts for the operations carried out during the exercise.

Concept
Initial Balance Income
1. Income collected in cash
Totals
2. Earned commissions left in payment to a provider
Totals
Additional Capital Contributions
3. Cash contribution made by the owner
Total Expenses
4. Electricity consumption paid in cash
Totals
: 5. Use of unpaid phone service Totals
Partial Capital Reductions
6. Withdrawal with goods made by the owner Final balance
ACTIVE
$ 700 000.00 Merchandise Box '
$ 100 000 00 $ 600 000 00 $ 40 000 00 __
1 LIABILITY
$ 500,000.00 Acreed Providers. Div. - =
$ 300 000 00 $ 200 000 00 =

INITIAL CAPITAL
$ 200 000.00
Capital
$ 200 000 00 + 40 000 00
$ 140 000 00 ';$ 600 000 00 - $ 300 000 00 $ 200 000- 00 = $ 240 000 00
50 000 00
+ 50 000 00
$ 140 000 00 $ 600 000 00
$ 30 000 00
i 250,000 00. $ 200,000 00
$ 290 000 00
30 000 00
$ 170 000 00 :$ 600 000 00 - $ 250 000 00 $ 200 000 00 = $ 320 000 00
- 20 000 00 .
20 000 00
$ 150 000 00 $ 600 000 00
250 000 00 $ 200 000 00
i ¡rt- 10 000 00
$ 300,000 00 .i- 10,000 00
$ 150 000 00 $ 600 000 00 - $ 250 000 00 $ 210 000 00
$ 290 000 00
40 000 00
_- 40 000 00 _
$ 150 000 00 $ 560 000 00 - $ 250 000 00 $ 210 000 00 = $ 250 000 00
ACTIVE
$ 710 000.00
PASSIVE
$ 460 000.00
FINAL CAPITAL
$ 250 000 00
If we compare the elements of the Initial Balance with those of the Final Balance, we find the following. three modifications:
Initial asset... $ 700 000.00
Final asset... 710 000.00
Assets increased... $ 10 000.00
Initial liability... $ 500 000.00
Final liability... 460 000.00
Liabilities decreased... $ 40 000.00
Initial stockholders' equity... $ 200 000.00
Final stockholders' equity... 250 000.00
Stockholders' equity increased by ____ $ 50,000.00
Precisely, the Comparative Balance Sheet is the accounting document that shows the increases or decreases that Assets, Liabilities and Stockholders have had for the operations carried out during the year, which in our case, according to the concepts of the previous initial and final Balance Sheets, would be the following: