[Samantha23henry]

How would I do a balance sheet in narrative form and a statement in changes in equity for the following:


Bakers bread shop was established on 1 April 2014 with an initial investment of $100,000 by the owner and a further investment of $20,000 into the business on the 29th April. The owner purchased land and building to use for business which was funded partly buy the owners initial investment and a mortgage which is due and payable in 2015.


Accounts. Balance at 30th April
Accounts payable 37,100
Buildings. 100,000
Cash at bank. 31,000
Furniture. 12,000
Capital. 150,000
Baking supplies. 5,600
Loan payable. 20,700
Accounts receivable. 20,000
Land. 43,200
Mortgage payable. 40,000
Cash drawings by owner. 36,000

[paraclete]

You start with assets then liabilities and the last item is equity A - L = E

Equity comprises contributed capital, retained earnings less drawings the missing number is retained earnings