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The SOCE is dated "as of the ye There are two equity accounts re Owner Capital, and Owner, Dra

The SOCE is dated "as of the ye There are two equity accounts re Owner Capital, and Owner, Dra

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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True or False.

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TRUE OR FALSE: Read each sentence carefully and determine whether the statement is True or False. Write your answers in the space provided before the number. 1. The SOCE is dated "as of the year ended". 2. There are two equity accounts reported on the SOCE of a sole proprietorship, namely, Owner Capital, and Owner, Drawings. 3. The number of capital accounts presented in SOCE of partnership is equal to the number of partners. 4. The Drawings account is used for sole proprietorship, partnership and corporation. 5. The partnership net income is allocated to each partner's capital using the profit and loss sharing agreement stated in the contract of partnership. 6. Paid-in capital is the amount of contributions given to the corporation in exchange for the shares of stocks. 7. All equity accounts have normal credit balances. 8. The capital stock account reports the proceeds from the issuance of the stocks. 9. The SOCE of a corporation presents the reconciliation from the beginning to the ending balances of all the equity accounts. 10. Dividends distributed by corporation are credited against retained earnings.
Transcribed Image Text:TRUE OR FALSE: Read each sentence carefully and determine whether the statement is True or False. Write your answers in the space provided before the number. 1. The SOCE is dated "as of the year ended". 2. There are two equity accounts reported on the SOCE of a sole proprietorship, namely, Owner Capital, and Owner, Drawings. 3. The number of capital accounts presented in SOCE of partnership is equal to the number of partners. 4. The Drawings account is used for sole proprietorship, partnership and corporation. 5. The partnership net income is allocated to each partner's capital using the profit and loss sharing agreement stated in the contract of partnership. 6. Paid-in capital is the amount of contributions given to the corporation in exchange for the shares of stocks. 7. All equity accounts have normal credit balances. 8. The capital stock account reports the proceeds from the issuance of the stocks. 9. The SOCE of a corporation presents the reconciliation from the beginning to the ending balances of all the equity accounts. 10. Dividends distributed by corporation are credited against retained earnings.
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