Seong Gi-hun started his cleaning services business on November 1, 2020, with a P240,000 investment from his personal savings and P120,000 froma bank loan. During the first half of the year, the net income of the business was P48,700. For the fiscal year ended October 31, 2021, Seong Gi-hun withdrew P10,000 cash to pay for his personal condo rental. Accordingly, no other transactions affected owner's equity during the year. By the end of the year, the liabilities of the business have increased by P45,000 due to business payables. How much is the total assets of the business voar ond?
Seong Gi-hun started his cleaning services business on November 1, 2020, with a P240,000 investment from his personal savings and P120,000 froma bank loan. During the first half of the year, the net income of the business was P48,700. For the fiscal year ended October 31, 2021, Seong Gi-hun withdrew P10,000 cash to pay for his personal condo rental. Accordingly, no other transactions affected owner's equity during the year. By the end of the year, the liabilities of the business have increased by P45,000 due to business payables. How much is the total assets of the business voar ond?
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter11: Individuals As Employees And Proprietors
Section: Chapter Questions
Problem 7CE
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Transcribed Image Text:Seong Gi-hun started his cleaning services business on November 1, 2020, with a
P240,000 investment from his personal savings and P120,000 from a bank loan.
During the first half of the year, the net income of the business was P48,700. For the
fiscal year ended October 31, 2021, Seong Gi-hun withdrew P10,000 cash to pay for
his personal condo rental. Accordingly, no other transactions affected owner's equity
during the year. By the end of the year, the liabilities of the business have increased
by P45,000 due to business payables. How much is the total assets of the business
at year end?
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