Joe Razon, the sole proprietor of the photocopying business that opened October 1, 2018. For the quarter ended December 30, 2018, the business was able to make revenues of ₱50,000 (all in cash) and it was able to incur expenses of ₱35,000 (all in cash). As the end of the quarter, total liabilities amounted to ₱50,000. Joe Razon wants to know the business total assets and total owner’s equity. With the help of his friend who is an accountant, he arrived at ₱75,000 total assets and ₱25,000 total owner’s equity. Moreover, Joe Razon had a Cash investment of ₱45,000 cash and Equipment amounting to ₱30,000.
Joe Razon, the sole proprietor of the photocopying business that opened October 1, 2018. For the quarter ended December 30, 2018, the business was able to make revenues of ₱50,000 (all in cash) and it was able to incur expenses of ₱35,000 (all in cash). As the end of the quarter, total liabilities amounted to ₱50,000. Joe Razon wants to know the business total assets and total owner’s equity. With the help of his friend who is an accountant, he arrived at ₱75,000 total assets and ₱25,000 total owner’s equity. Moreover, Joe Razon had a Cash investment of ₱45,000 cash and Equipment amounting to ₱30,000.
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter1: Introduction To Accounting And Business
Section: Chapter Questions
Problem 21E
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Joe Razon, the sole proprietor of the photocopying business that opened October
1, 2018. For the quarter ended December 30, 2018, the business was able to make
revenues of ₱50,000 (all in cash) and it was able to incur expenses of ₱35,000 (all in
cash). As the end of the quarter, total liabilities amounted to ₱50,000. Joe Razon wants
to know the business total assets and total owner’s equity. With the help of his friend
who is an accountant, he arrived at ₱75,000 total assets and ₱25,000 total owner’s
equity. Moreover, Joe Razon had a Cash investment of ₱45,000 cash and Equipment
amounting to ₱30,000.
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