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Here is a step-by-step solution to Problem 4, which involves preparing a **Statement of Changes in Owner's Equity for ABC Company** for the year ended December 31, 2022.

### Given:
- **Initial Capital on January 1, 2021** = ₱ 75,000
- **Net Income for 2021** = ₱ 37,545
- **Drawings on December 31, 2021** = ₱ 15,000
- **Investments in 2022**:
  - March 16, 2022 = ₱ 13,400
  - August 19, 2022 = ₱ 17,650
- **Net Income for 2022** (not provided directly; needs to be calculated from another part of the activity)
- **Drawings on December 31, 2022** = ₱ 20,000

### Format for Statement of Changes in Owner's Equity:

**Statement of Changes in Owner's Equity**
For the Year Ended December 31, 2022

| Particulars                          | Amount (₱)    |
|---------------------------------------|---------------|
| **Capital, January 1, 2022**          | (to be calculated) |
| **Add: Investments in 2022**          |               |
| - March 16, 2022                      | ₱ 13,400      |
| - August 19, 2022                     | ₱ 17,650      |
| **Add: Net Income for 2022**          | (from SCI)    |
| **Less: Drawings in 2022**            | ₱ 20,000      |
| **Capital, December 31, 2022**        | (final amount)|

#### Steps:
1. **Calculate Capital on January 1, 2022**:
   - Capital on Jan 1, 2022 = Initial capital + Net Income for 2021 - Drawings for 2021.
   - \( 75,000 + 37,545 - 15,000 = ₱ 97,545 \).

2. **Include additional investments in 2022**:
   - Total investments = \( 13,400 + 17,650 = ₱ 31,050 \).

3. **Net Income for 2022**:
   - You will need to calculate this from the statement of comprehensive income (SCI) in the other parts of the activity.

4. **Final Capital**:
   - The capital for December 31, 2022, will be calculated once all data is entered.

Would you like assistance with the calculation of net income for 2022 or any other details from the SCI?

### Relative Questions:
1. How is net income derived from the given sales and expense data?
2. What impact do investments and drawings have on the owner’s equity?
3. How do additional investments during the year affect the final capital balance?
4. Can you explain the process of classifying expenses in the function of expense format?
5. What role does depreciation play in the overall financial statements?

**Tip**: Always double-check the treatment of drawings and additional investments to ensure accurate changes in owner's equity.

Answer problem no. 4: Prepare a Statement of Changes in Owner’s Equity for ABC Company for the year ended December 31, 2022.

Prepare the Statement of Changes in Owner's Equity for ABC Company for the year ending December 31, 2022. This problem involves calculating owner's equity, net income, and the impact of investments and drawings. Suitable for senior high or college-level accounting students.

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