CASE STUDY

STATEMENT OF CHANGES IN OWNERS' EQUITY

Suppose that the company has the following balance sheet at the beginning of the year.

$\backslash$table$[[50\mathrm{.}000,,,],[,,],[,$Share capital $(1$ TL par$),20\mathrm{.}000],[,,$Additional paid$-$in capital,$12\mathrm{.}000],[,$Retained earnings,$18\mathrm{.}000,]]$

$1-$ The company issues $5\mathrm{.}000$ amount of shares at $1,6TL$ each.

$2-$ The company invests in shares of ABC company for trading purposes and purchases $2\mathrm{.}000$ amount of those shares at $1,2$ TL each.

$3-$ The company invests in shares of $xYZ$ company for non$-$trading purposes and purchases $1\mathrm{.}000$ amount of those shares at $0,8$ TL each.

$4-$ The share price of ABC company drops to $1,1TL.$

$5-$ The share price of XYZ company increases to $1,4TL.$

$6-$ The company repurchases $2\mathrm{.}000$ amount of its own shares at $1,8$ TL each.

$7-$ The company sells half of the ABC shares at $1,3TL$ each.

$8-$ The company sells half of the XYZ shares at $1TL$ each.

$9-$ The company sells half of its own shares at $2$ TL each.

$10-$ The company declares $1\mathrm{.}000$ TL dividends.

Assuming that all relevant transactions are based on cash payments, prepare journal entries $(30$ points$),$ illustrate the balance sheet $(25$ points$),$ income statement $(15$ points$)$ and statement of changes in owner's equity $(30$ points$)$ at the end of the period.